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Question - A, B and C are partners with capital balances and profit and loss ratios of P50,000 (30%), P70,000 (20%) and P79,500 (50%), each respectively. The partnership owes C P20,000, while B owes the partnership P10,000. The partners decide to liquidate and at this time, B receives an equipment given a value of P5,000 from the partnership, in addition, B and C receive a total of P17,000 and P15,000 non-cash assets remain unsold. The partnership also paid P20,000 liquidating expenses and withheld P20,000 cash from distribution, P5,000 of which is appropriated for unpaid liabilities since their creditors could not be located at this time. How much is the loss on sale of the non-cash assets?
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