Reference no: EM133148041

Question - On July 31,2019, DEF partnership shows that D, E and F have capital balances of 500,000, 300,000 and 200,000 with profit or loss ratio of 1:3:6. The total partnership capital after realization of non-cash assets increased by P 200,000. Before liquidation, the partnership has P 150,000 of total liabilities. From the total partnership liabilities, it includes a payable to F of P 30,000. All partners are personally solvent.

Required -

1. If the cash balance after realization is 150% of the increase in the cash balance due to the realization of non-cash assets, how much is the book value of the non-cash assets?

2. If the cash balance after realization is 900% of the cash balance before realization of non-cash assets, how much cash is to be distributed to F in settlement of his total interest in the partnership?

3. If the cash balance after realization is 150% of the increase in the cash balance due to the realization of non-cash assets, how much is cash is distributed to E in final settlement of his interest?

4. If the cash balance after realization is 900% of the cash balance before realization of non-cash assets, how much is the book value of the non-cash assets?