Solution-What is the minimum amount that tea creditors

What is the minimum amount that tea creditors would have

Reference no: EM133185376

Question - A local partnership was considering the possibility of liquidation since only one partner (Tristan) is solvent, and all others were insolvent. Capital balances and the profit/loss agreement at that time were as follows:

Tea, capital 40% P60,000

Serenity, capital 20% 67,000

Mai, capital 20% 17,000

Tristan, capital 20% 96,000

Tea's creditors filed a P25,000 claim against the partnership assets. At that time, the partnership held assets reported at P360,000 and liabilities of P120,000.

Required -

1. If the assets could be sold for P228,000, what is the minimum amount that Tea's creditors would have received?

a. P0 c. P25,000

b. P2,500 d. P7,200

2. If Tea's creditors want to be paid in full for their claim, how much should the assets be sold for during liquidation?

a. P273,000 c. P272,500

b. P287,000 d. P87,500

Reference no: EM133185376

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What is the minimum amount that tea creditors would have

Reference no: EM133185376

Reference no: EM133185376

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