The following balance sheet accounts were taken from the partnership of MDL Co. on March 31, 2017: Cash-P500,000; Other
Posted: Mon May 30, 2022 7:48 am
The following balance sheet accounts were taken from the
partnership of MDL Co. on March 31, 2017: Cash-P500,000;
Other Assets- P3,600,000; Liabilities-P1,040,000; Maria, Capital
(40%)-P800,000; Demi, Capital (40%)-P1,300,000 and Liza, Capital
(20%)-P960,000. The partnership was liquidated by
installment. The proceeds from the first sale of non-cash
assets with a book value of P1,800,000 amounted to
P1,000,000. In the first month, P640,000 of the
liabilities and P50,000 of unrecorded liabilities were paid.
The partners also set aside P100,000 for future expenses.
How much is the cash balance after the first
installment payment?
partnership of MDL Co. on March 31, 2017: Cash-P500,000;
Other Assets- P3,600,000; Liabilities-P1,040,000; Maria, Capital
(40%)-P800,000; Demi, Capital (40%)-P1,300,000 and Liza, Capital
(20%)-P960,000. The partnership was liquidated by
installment. The proceeds from the first sale of non-cash
assets with a book value of P1,800,000 amounted to
P1,000,000. In the first month, P640,000 of the
liabilities and P50,000 of unrecorded liabilities were paid.
The partners also set aside P100,000 for future expenses.
How much is the cash balance after the first
installment payment?