What is the amount of loss or gain on realization

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Question - Distribution of Cash upon Liquidation - Soria and Paras are partners sharing profits and losses equally. They decided to terminate the business. Prior to realization, their capital balances are P150,000 and P70,000, respectively. After all non-cash assets are sold and all liabilities are paid, there is a cash balance of P160,000.

Required -

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

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

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

Reference no: EM133006837

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