Reference no: EM132932658

Questions -

Q1: April, May and June are partners in Summer Partnership and share profits and losses 50%, 30% and 20% respectively. The partners have agreed to liquidate the partnership and some liquidation expenses to be incurred. Prior to the liquidation, the statement of financial position of the partnership reflects the following book values:

Cash P 25,200

Noncash assets 297,600

Notes payable to June 38,400

Other liabilities 184,800

April, Capital 72,000

May, Capital (12,000)

June, Capital 39,600

Assuming that the actual liquidation expenses are P16,800 and that the noncash assets with a book value of P240,000 are sold for P216,000. How much cash should June receive?

Q2: Mac, Dan and Pan are partners with capital balances of P350,000, P250,000, and P350,000 and sharing profits 30%, 20% and 50%, respectively. Partners agreed to dissolve the business and upon liquidation, all of the partnership assets are sold and sufficient cash is realized to pay all the claims except one for P50,000, Pan is personally insolvent, but the other two partners are able to meet any indebtedness to the firm. On the remaining claim against the partnership, Mac is to absorb?

Q3: Hip and Hop who share profits and losses in the ratio of 3:7 are partners with capital balances of P 40,000 and P 60,000, respectively. Jump is to be admitted into the partnership for 20% interest in the capital of the firm. If assets are revalued and the capital balances of Hip and Hop after recording the admission of Jump are P 52,000 and P 88,000, respectively, the cash paid by Jump is?