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On December 31, 2018, the Statement of Financial Position of JKL Partnership with profit or loss ratio of 4:1:5 is presented below: On January 1, 2019, JKL partnership decided to liquidate. During their first month of liquidation, noncash asset with book value of P1,500,000 has been sold at a loss of P500,000. Liquidation expense amounting to P100,000 has been incurred and paid for the month of January while P150,000 is anticipated in the coming period. Liability to creditors has been paid in the amount of P750,000. What is the amount of cash distributed to K on the first month of liquidation? a. 175,000 b. 250,000 c. 162,500 d. None

On December 31, 2018, the Statement of Financial Position of JKL Partnership with profit or loss ratio of 4:1:5 is presented below: On January 1, 2019, JKL partnership decided to liquidate. During their first month of liquidation, noncash asset with book value of P1,500,000 has been sold at a loss of P500,000. Liquidation expense amounting to P100,000 has been incurred and paid for the month of January while P150,000 is anticipated in the coming period. Liability to creditors has been paid in the amount of P750,000. What is the amount of cash distributed to K on the first month of liquidation? a. 175,000 b. 250,000 c. 162,500 d. None

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On December 31, 2018, the Statement of Financial Position of JKL Partnership with profit or loss ratio of 4:1:5 is presented below: On January 1, 2019, JKL partnership decided to liquidate. During their first month of liquidation, noncash asset with book value of P1,500,000 has been sold at a loss of P500,000. Liquidation expense amounting to P100,000 has been incurred and paid for the month of January while P150,000 is anticipated in the coming period. Liability to creditors has been paid in the amount of P750,000.

What is the amount of cash distributed to K on the first month of liquidation?
a. 175,000
b. 250,000
c. 162,500
d. None

P 500,000 Liability to creditors 1,000,000 X, Capital Y, Capital Z, Capital Cash Noncash asset 2,000,000 875,000 375,000 250,000
Transcribed Image Text:P 500,000 Liability to creditors 1,000,000 X, Capital Y, Capital Z, Capital Cash Noncash asset 2,000,000 875,000 375,000 250,000
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