Reference no: EM132968907

Questions -

Q1. A and C are partners with capital balances of P 24,500 and P 15,500, respectively. The profit and loss agreement is 60% for A and 40% for C. The partners decided to liquidate the partnership. The firm's liabilities amount to P 36,000, including P 4,000 owing to A and P 3,500 owing to C on loans. After realization of assets, the cash on hand amounts to P 37,500. How much is the total loss on realization? How much did A receive? How much did C receive?

Q2. Partners Nina, Ricci, and Guess, who share profit and losses in the ratio of 2:2:1, respectively, decided to liquidate. The condensed statement of financial position account balances just prior to the liquidation are: Cash - P 100,000; Other assets - P 400,000; Liabilities - P 140,000; Nina, Loan - P 10,000; Nina, Capital - P 45,000; Ricci, Capital - P 105,000; Guess, Capital - P200,000. After paying the liabilities to partnership creditors, cash of P207,500 is available for distribution to partners. Any capital deficiency is made good by the deficient partner, since all three partners are personally solvent. How much was the loss on realization? how much would Nina, Ricci and Guess receive in the final settlement of their interest?