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Question - King, Queen and Prince are partners sharing profit and loss in the ratio of 2:1:1 respectively. Their capital balances are P400,000 for King; P200,000 for Queen and P100,000 for Prince. Claims of suppliers amounted to P500,000 including the loan extended by Prince, P50,000. The cash balance amounted to P300,000 and it increased to P1,050,000 as a result of the sale of the noncash assets.
1. How much cash will White receive?
2. How much was the available cash for distribution to the partners?
3. How much was the non-cash assets of the partnership?
4. How much was the cash proceeds?
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