1. Following is the balance sheet of the ABCD Partnership at March 31, 20x2, when the partnership
is to be liquidated: (10-F26)
Cash P 6,000
Liabilities P 12,400
Other assets 126,000
A, loan 12,000
B, loan 14,400
D, loan 9,600
A, capital – 25% 16,200
B, capital – 25% 12,000
C, capital – 25% 37,700
D, capital – 25% 17,700
During the month of April 20x2, assets having a book value of P18,000 are sold at a loss of P2,400.
Liquidation expenses of P600 are paid as well as P7,200 of the liabilities. Of the liabilities shown in the
balance sheet, P240 represents salary payable to D and P160 represents salary payable to C.
On April 30, 20x2 cash to be distributed to A, B, C, and D as follows:
A
B
C
D
A.
P -0P -0P -0P 9,000
B. P 1,950
P 1,950
P 1,950
P 1,950
C.
P -0P -0P -0P 1,950
D.
P -0P -0P 9,000
P -02. From the following data from the records of ABC Partnership
Balance Sheet
December 31, 20x2
Assets
Cash
Other Noncash Assets
Total
P 2,000
28,000 (21.7k)
P 30,000
Liabilities and Capital
Liabilities
A, loan
A, capital
B, capital
C, capital
Total
P 5,000
2,500
12,500
7,000
3,000
P 30,000
Profit and loss ratio is 3:2:1 for a, B, and C, respectively. The Other noncash assets were realized as
follows: (18-20F26)
Date
Cash Received
Book Value
January 20x2
P 6,000
P 9,000 = (3k)
February 20x2
3,500
7,700=(4. 5k)
March 20x2
12,500
11,300=1.2k
Cash is distributed as other noncash assets realized. (6.3k)
1. The total loss on liquidation to A is:
A. P3,000
C. P1,000
B. P2,000
D. P 0
2. Total cash received by B is:
A. P 0
B. P1,500
C. P2,000
D. P5,000
3. Cash received by C in January is:
A. P 0
B. P 200
C. P 500
D. P1,000