Reference no: EM132799404
Problem - At the end of its fiscal year on August 31, 2004, the Billy, Johnny, and Marky partnership had account balances as follows:
|
Cash
|
P35,000
|
Accounts payable
|
P61,250
|
|
Accounts receivable
|
52,500
|
Loan from Johnny
|
43,750
|
|
Inventories
|
122,500
|
Billy, capital (20%)
|
122,500
|
|
Plant asset - net
|
105,000
|
Johnny, capital (30%)
|
87,500
|
|
Loan to Billy
|
52,500
|
Marky, capital (50%)
|
52,500
|
|
|
P367,500
|
|
P367,500
|
The percentages shown are the residual profit sharing ratios. Marky also gets a P21,000 annual salary allowance. The partners dissolved the partnership on September 1, 2004 and began the liquidation process. During September, the following events occurred:
Receivables of P26,250 were collected.
The inventory was sold for P35,000.
All available cash was disbursed on September 30, except for P17,500 of expected expenses.
Required - Compute the amount of cash Johnny should receive on September 30, 2004?