Reference no: EM132877406
The balance sheet accounts of partners Celine, Andrea and Veronica before liquidation are the following:
Cash, P360,000;
Non-Cash Assets, P1,790,000
Liabilities, P1,000,000;
Celine, Capital (50%), P460,000;
Andrea, Capital (30%) P370,000
Veronica, Capital (20%), P320,000.
On the first month of liquidation assets with a book value of P1,400,000 are sold for P1,060,000. Liquidation expenses of P40,000 are paid and additional expenses are anticipated. Liabilities are paid amounting to P362,000, and sufficient cash is retained to ensure the payment to creditors before making payment to partners. In the first payment of cash to partners, Andrea received P130,000.
Problem 1: The cash withheld for future liquidation expenses amounted to:
a. P30,000
b. P35,000
c. P5,000
d. P70,000
Problem 2: How much was distributed to Veronica?
a. P60,000
b. P86,667
c. P160,000
d. P-0-