Reference no: EM132852614

Question - A, B and C are partners. On January 3, 2015, their capital balances and profit and loss ratio are as follows: A, P500,000 60%, B , P100,000 25%; C, P120,000 15%. C withdrew P20,000 during the year. Net loss on December 31, 2015 totaled P40,000. Hence, the partners decided to liquidate the partnership. It is uncertain how much of the assets will ultimately yield but favourable realization is expected. It is therefore agreed to distribute cash as it becomes available. There are unpaid liabilities of P10,000 and cash on hand of P1,400.

1) The amount of noncash assets before liquidation is

a. 220,000

b. 218,600

c. 210,000

d. 208,600

e. none of these

2) The amount to be realized by the partnership on the sale of its assets so that A will receive a total of P38,000 in the final settlement of her interest is?

a. 206,600

b. 18,600

c. 238,600

d. 12,000

e. none of these

3) Assuming C received a total of P66,000, the amount that B would have received using priority program is

a. 0

b. 4,000

c. 10,000

d. 43,333

e. 40,335

f. 45,330

g. none of these