Problem 1
On December 31, 2022, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 6:1:3 is
presented as follows:
Cash
Receivable from A
Other non-cash asset
P1,000,000
500,000
2,000,000
Total Liabilities
Payable to B
Payable to C
A, Capital
B, Capital
C, Capital
P2,000,000
1,000,000
100,000
700,000
(650,000)
350,000
On January 1, 2023, the partners decided to liquidate the partnership. All partners are legally declared to be personally
insolvent. The other noncash assets were sold for P1,500,000. Liquidation expenses amounting to P100,000 were
incurred.
1.
2.
3.
4.
How much cash was received by B at the end of partnership liquidation? 5pts
How much cash was received by C at the end of partnership liquidation? 5pts
If the noncash assets were sold for P2,500,000, how much cash will be received by partner B? 5pts
If partners are solvent, how much cash will be received by A and B at the end of partnership liquidation? 5pts
Problem 2
On December 31, 2022, the Statement of Financial Position of Mob Psycho 100 Partnership with profit or loss ratio of
1:4:5 is presented as follows:
Cash
Non-cash asset
P1,200,000
800,000
Total Liabilities
Reigen, Capital
Mob, Capital
Dimple, Capital
1,500,000
150,000
300,000
On January 1, 2023, the partners decided to liquidate the partnership. All partners are legally declared to be personally
insolvent. The other noncash assets were sold at a specific price. Liquidation expenses amounting to P50,000 were
incurred. At the end of liquidation, Regen received P80,000.
1.
2.
3.
4.
What is the amount of cash received by Mob at the end of liquidation? 5pts
What is the proceeds from the sale of noncash asset during partnership liquidation? 5pts
What is the gain/loss on sale of noncash asset? 5pts
What is the amount of cash received by Dimple if all partners are solvent? 5pts
Problem 3
As of December 31, the books of Aken Ka Lang Partnership showed capital balances of: Aken – P40,000; Ka – P25,000;
and Lang – P5,000. The partners’ profit and loss ratio was 3:2:1, respectively. The partners decided to dissolve and
liquidate. They sold all the non-cash assets for P37,000 cash. After settlement of all liabilities amounting to P12,000, they
still have P28,000 cash left for distribution.
1. What is the gain/loss on realization of the non-cash assets? 5pts
2. Assuming that any partner’s capital debit balance is uncollectible, the share of Aken in the P28,000 cash for
distribution would be? 5pts
3. How much cash was received by partner Ka and Lang? 5pts
4. If the partners are solvent, how much cash will be received by partner Ka? 5pts