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Question - The following capital account balances and the corresponding profit and loss ratio:
Capital Balances P & L ratio
A 1,050,000 30%
B 750,000 20%
C 1,050,000 50%
The partners agreed to dissolve the business and upon liquidation, all of the partnership assets are sold and sufficient cash is realized to pay all the claims except one for P150,000.
C is personally insolvent, but the other two partners are able to meet any indebtedness to the firm.
On the partnership claim against the partnership, how much should B absorb?
On the partnership claim against the partnership, how much should A absorb?
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