What was the final distribution to curry in march

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Reference no: EM132641419

Upon the distribution, the partners agreed to apply bonus to Allen based on the net income before any deductions. However, on January 2,2021, the partners decided to dissolve Beyond the Arc due to disagreements.

The partnership's financial position as of the date is as follows:

Cash P170,000

Receivables 1,000,000

Inventories 700,000

Building 780,000

Total Assets P2,650,000

Payables P850,000

Curry, Capital 690,000

Payton, Capital 720,000

Allen, Capital 690,000

Total Liabilities and Capital P2,950,000

The assets were realized, and liquidation expenses were paid as follows:

January 14 Inventory P 400,000

Liquidation expense (45,000)

February 20 Receivables realized 400,000

Liquidation expense (30,000)

March 17 Building 810,000

Liquidation expence (9,000)

Before liquidating, the partners also decided that:

  • Creditors will be paid as follows: P150,000 on January 18, P500,000 on February 27 and the balance on March 22.
  • Cash should be withheld for possible future liquidation expenses in the amount of P60,000 in January and P9,000 in February
  • As soon as cash is available, this should be immediately be distributed to the partners to the extent possible

Problem 1: How much was the cash available for distribution at the end of January?

Option 1: (P385,000)

Option 2:  P365,000

Option 3: Nil

Option 4: P305,000

Problem 2: How much was the cash available for distribution at the end of March?

Option 1:  P510,000

Option 2: P1,019,000

Option 3:  P 819,000

Option 4:  P810,000

Problem 3: What was the final distribution to Curry in March?

Option 1: P270,000

Option 2: P227,667

Option 3: P170,000

Option 4:  P183,667

Reference no: EM132641419

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