Reference no: EM133039942

Question - Maea, Hannah, Jane, and Lei are partners of PAST Partnership. They share P/L ration on 4:3:2:1 respectively. Their capital and loan balances were as follows:

Capital Loan

Maea 480,000 20,000 cr.

Hannah 350,000 50,000 dr.

Jane 300,000 -

Lei 190,000 10,000 cr.

The following questions must be treated independent to each other.

Required -

Q1. How much is the cash to be received by Hannah if the cash available for the first payment to partners is 330,000?

a. Nil amount c. 9,000

b. 46,500 d. 99,000

Q2. During the first installment, only Jane and Lei received cash. Jane received 26,667 while Lei received 63,333. How much is the cash to be received during the second installment by Maea if the cash available is 175,000?

a. 70,000 c. 80,000

b. 90,000 d. 100,000

Q3. All partners received certain amount of cash during the previous installment. What is the cash to be received by Jane if the cash available for the current installment is 300,000?

a. Nil amount c. 60,000

b. 100,000 d. 120,000

Q4. What is the amount received by Lei during the first installment assuming that Maea received 75,000?

a. Nil amount c. 75,000

b. 93,750 d. 100,000

Q5. How much is the total amount distributed to the partners during the first installment assuming that Maea received 140,000?

a. 350,000 c. 400,000

b. 450,000 d. 500,000