How should the loss or gain be divided between the partners

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Distribution of Cash upon Liquidation Cynthia Natividad and Domingo Ungria Jr., with capital balances of P340,000 and p360,000, respectively, decided to liquidate their partnership. After selling the noncash assets and paying the liabilities, there is P820,000 of cash remaining. If the partners share profits and losses equally, how should the cash be distributed? Problem #8 Distribution of Cash upon Liquidation Romulo Soria and Elizabeth Paras are partners, sharing profits and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are P150,000 and P70,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of P160,000.

Required:

Problem 1. What is the amount of loss or gain on realization?

Problem 2. How should the loss or gain be divided between the partners?

Problem 3. How much cash should be distributed to each partner?

Reference no: EM132671586

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