How much would MP receive

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Question - The assets and equities of the EN, RO and MP partnership at the end of its fiscal year on October 31, 2019 are as follows:

Cash 150,000

Liabilities 500,000

Receivables 200,000

Loan from MP 120,000

Loan Receivable - RO 80,000

EN, Capital 460,000

Inventory 400,000

RO, Capital 300,000

Plant assets 700,000

MP, Capital 150,000

The partners have profit and loss ratio: EN = 25%; RO = 50%; and MP = 25%. The partners decided to liquidate the partnership. They estimate that the non-cash assets other than the loan receivable - RO can be converted into P1,000,000 cash over the two months period ending December 31, 2019. Cash is to be distributed to appropriate parties as it becomes available during liquidation process.

Under a cash priority program how much would MP receive based on P800,000 cash balance after initial sale of non-cash assets?

Reference no: EM132979246

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