Reference no: EM132898755

The partnership of Joe, Al, and Mike shares profits and losses 40%, 40%, and 20%, respectively. On January 1, 2021, the partners voted to dissolve the partnership, at which time the assets, liabilities, and capital balances were as follows:

Assets                                                    Liabilities and Capital
Cash P400,000                              Accounts Payable P900,000
Other Assets 1,200,000                  Loan Payable to Al 100,000
                                                 Joe, Capital 350,000
                                                 Al, Capital 130,000
                                                 Mike, Capital 120,000
Total P1,600,000                           Total P1,600,000

All of the partners are personally insolvent. Assume that all noncash assets were sold for P700,000 and all available cash is distributed in final liquidation of the partnership.

Problem 1: Compute for the cash distribution upon liquidation to each of the partners