Question
PARTNERSHIP LIQUIDATION The following balance sheet is presented for the partnership of A, B and C , who share profits and losses in the respectively
PARTNERSHIP LIQUIDATION
The following balance sheet is presented for the partnership of A, B and C , who share profits and losses in the respectively ratios of 5:3:2.
ASSETS
Cash P 120,000
Other Assets P 1,080,000
Total Assets P 1,200,000
LIABILITIES AND CAPITAL
Liabilities P 280,000
A, Capital P 560,000
B, Capital P 320,000
C, Capital P 40,000
TOTAL P 1,200,000
Assume that the three partners decided to liquidate the partnership. If the other assets are sold for P800,000, how should the available cash be distributed to each partner?
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Cost Management
Authors: Don R Hansen, Maryanne M Mowen, Dan L Heitger
5th Edition
357141091, 978-0357141090
