Reference no: EM132893477

Partners Edralin and Flores each have a P400,000 capital balance and share profits and losses in a 3:2 ratio, respectively. Cash equals P200,000, non-cash assets equal P1,200,000, and liabilities equal P600,000.

Problem 1: If the non-cash assets are sold for P700,000, Edralin's capital account will

A. Decrease by P210,000???         C. decrease by P300,000
B. Decrease by P420,000        ???D. increase by 420,000

Problem 2: If the non-cash assets are sold for P500,000 and each partner is personally insolvent, Flores eventually will receive cash of

A. P0               ?????C. P120,000
B. P100,000????       D. P200,000

Problem 3: If the non-cash assets are sold for P450,000, and both partners agreed to make up for any capital deficits with personal cash contributions, Edralin eventually will receive cash of

A. P0              C. P100,000
B. P50,000        ????D. P180,000