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PROBLEM - The capital balances of the partners Star Hardware prior to liquidation were as follows:
CAPITAL
LOAN
P/L
RATIO
Dee Nuh Kaya
P65,000
P5,000
35%
Lala Van Pah
80,000
40%
Fa Gud Na
45,000
20,000
25%
Required -
1. Prepare Cash Priority Program.
2. Based on the program, determine how much each partner will receive assuming; Cash available for distribution is P20,000.
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