Reference no: EM132888985

The following statement of financial position account balances for the partnership of Pierce, Garnett, and Rondo, the following:

Cash - P 160,000;

Other assets - P 320,000

Liabilities - P 180,000;

Pierce, Capital - P 48,000;

Garnett, Capital - P 216,000;

Rondo, Capital - P 36,000.

Problem 1: The partners agree to dissolve the partnership after selling the other assets. If Pierce is to receive a final settlement of P 180,000, how much should be the proceeds from sale of the non-cash assets?

Problem 2: assuming that the non-cash assets were sold at a loss of P 70,000, how much would be the total capital of the partners immediately before final distribution of cash?

Problem 3: assuming that the non-cash assets were sold for P 120,00, how much would be received by Garnett in the final distribution of cash? Assume that any partner incurring a capital deficiency is insolvent.