Reference no: EM132811268

A balance sheet for the partnership of Mavi, Cong and Viy, who share profits in the ratio of 50:25:25, shows the following balance just before liquidation:

Cash P 113,400
Other assets 562,275
Liabilities 188,825

Mavi, capital (50%) P207,900
Cong, capital (25%) P146,650
Viy, capital (25%) P132,300

On the first month of liquidation, the following occurs:

1. Certain assets with book value of P500,000 were sold for P375,000.
2. Liquidation expenses of P9,450 are paid and additional liquidation expenses are anticipated.
3. Liabilities are paid amounting to P51,500 and sufficient cash is retained to ensure the payment to creditors before making payments to partners.
4. On the first payment to partners, Mavi receives P99,537.50

Problem 1: What is the amount of cash withheld for anticipated liquidation expenses?

Problem 2: How much cash were received by Cong?

Problem 3: What is the balance of cash account after the first payment?