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On January 1, 2009, partners AAA, BBB and CCC, who share profits and losses in the ratio of 5:3:2, respectively, decided to liquidate their partnership. On this date, the partnership’s condensed balance sheet was as follows: Cash P 50,000 Other assets 250,000 P 300,000 Liabilities P 60,000 AAA, capital 80,000 CCC, capital 90,000 BBB, capital 70,000 Total P 300,000 On June 15, 2009, the first cash sale of other assets with a carrying amount of P150,000 realized P120,000. Safe installment payments to the partners were made the same date. How much cash should be distributed to each partner? AAA BBB CCC P 15,000 P 51,000 P 44,000 40,000 45,000 35,000 55,000 33,000 22,000 60,000 36,000 24,000

SWFT Essntl Tax Individ/Bus Entities 2020

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 2BD

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On January 1, 2009, partners AAA, BBB and CCC, who share profits and losses in the ratio of 5:3:2, respectively, decided to liquidate their partnership. On this date, the partnership’s condensed balance sheet was as follows:
Cash P 50,000
Other assets 250,000
P 300,000

Liabilities P 60,000
AAA, capital 80,000
CCC, capital 90,000
BBB, capital 70,000
Total P 300,000

On June 15, 2009, the first cash sale of other assets with a carrying amount of P150,000 realized P120,000. Safe installment payments to the partners were made the same date. How much cash should be distributed to each partner?
AAA BBB CCC
P 15,000 P 51,000 P 44,000
40,000 45,000 35,000
55,000 33,000 22,000
60,000 36,000 24,000

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