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Problem - The partnership of Q, R, and S is undergoing liquidation and the partners' accounts and profit and loss sharing ratio are as follow:
Q
R
S
Capital
P50,000
P60,000
P20,000
Loans to partnership
15,000
10,000
Loans from partnership
20,000
Profit and loss sharing ratio
50%
20%
30%
Required -
1. From a Cash Priority Program, how much is the loss absorption capacity of each partner?
2. Who among the partners are the most vulnerable and the least vulnerable?
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