Reference no: EM132885751
Question - PARTNERDHIP LIQUIDATION - XYZ Co.'s statement of financial position shows the following account balances before liquidation:
Cash P60,000
Other Assets 870,000
Total Assets P930,000
Accounts payable P60,000
Payable to Y 40,000
X, Capital (20%) 160,000
Y, Capital (30%) 260,000
Z, Capital (50%) 410,000
Total Liabilities & Equity P930,000
In the first installment, a portion of the other assets with a carrying amount of P540,000 was sold for only P390,000. Liquidation expenses amounting to P6,000 were paid.
Required -
a. Safe payment schedule for the 1st installment showing the total and the amounts of safe cash payments distributed to partners X, Y, and Z.
b. Using the cash priority program, what are the loss absorption capacity of partners X, Y, and Z, respectively?
c. Cash priority program for the 1st installment showing the priority cash payments to each partner.
d. What is the amount of available cash as of first installment?
e. Show how the available cash in the 1st installment will be distributed to partners X, Y, and Z according to cash priority program.