Reference no: EM132955349
The statement of Financial Position of JJJ Partnership, just before liquidation is as follows:
ASSETS
Cash 50,000
Other Assets 140,000
Loan - July 10,000
Total Assets 200,000
LIABILITIES & CAPITAL
Liabilites 70,000
Loan- January 20,000
January,Capital (50%) 30,000
June,Capital (30%) 50,000
July,Capital (20%) 30,000
Total Liabilities & Capital 200,000
Partners January and June are personally insolvent. The percentages in parenthesis are their profit and loss ratio.
Situation 1: If non cash assets are sold for P150,000 and all liabilities are paid and liquidation expense of P5,000 are also paid:
Problem 1. How much cash should January receive?
A. 50,000; 50,000; 20,000
B. 52,000; 51,000; 21,000
C. 51,000; 52,000;20,000
D. 51,000; 52,000; 21,000
Situation 2: If non cash assets are sold for P 50,000, liquidation expense of P5,000 and all liabilities are paid:
Problem 2. How much cash should January, June, July receive?
A. 50,000; 50,000; 20,000
B. 2,500; 21,5000, 1,000
C. 1,000; 2,500; 21,500
D. 1,500; 21,500; 2,000
Situation 3: If non cash assets are sold for P40,000, liquidation expense of P10,000 and all liabilities are paid
Problem 3. How much cash should June receive
A. P 0
B. P4.000
C. P 10,000
D. P 14,000
Situation 4: If July received a total of P 8,000:
Problem 4. How much cash should January receive?
A. 12,000
B. 20,000
C. 32,000
D. 50,000