How cash should be distributed during the entire course

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Reference no: EM132801238

Problem - Partners A, B, C and D share profits in the ratio of 3:3:1:1, respectively. The following balances are obtained just before partnership liquidation:

	A	B	C	D
Capital balances	P70,000	P70,000	P30,000	P20,000
Loan balances	20,000	5,000	25,000	15,000

Proceeds from the sale of partnership assets during March and April by the one in charge of liquidation and distribution of cash to partners at the end of each month are as follows:

	Cash Realized	Cash Distributed	Cash Withheld
March	P40,000	P25,000	P15,000
April	35,000	40,000	10,000

Requirements -

1. Prepare a program to show how cash should be distributed during the entire course of liquidation.

2. Using the program above, prepare schedules summarizing the payments to be made to partners at the end of March and April. Indicate what part of the payments is to be applied against loan balances and against capital balances.

Reference no: EM132801238

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