Reference no: EM133040538
Problem 1 - Moose, Booze and Goose are partners with capital balances of P 320,000, P 450,000 and P 520,000 respectively with profit and loss sharing ratio of 2:3:5 respectively. The firm owes Booze P 20,000. Upon liquidation, P 390,000 is available for distribution to the partners. What amount of cash will Moose receive?
A. 78,000
B. 136,000
C. 258,000
D. 320,000
Problem 2 - Alpha, Beta, and Gamma are partners who have capital balances of P480,000, P500,000 and P180,000 respectively. P/L is distributed in the ratio of 4:2:1. Beta received P260,000 as a result of liquidating the partnership when 60% of the noncash assets of the partnership is realized. The partnership has total assets totaling to P500,000 including P50,000 cash before liquidation. The partnership also incurred P35,000 liquidation expenses and withheld P28,000 for the unpaid liabilities of the partnership. What is the loss on realization of noncash assets?
A. 632,000
B. 875,000
C. 855,000
D. 612,000
Problem 3 - Partner Axe, Max and Rax are partners sharing profits and losses equally. Below are their data:
|
|
Axe
|
Max
|
Rax
|
Total
|
|
Capital
|
100,000
|
80,000
|
300,000
|
480,000
|
|
Drawings
|
60,000
|
40,000
|
20,000
|
120,000
|
The partners decide to liquidate and their undistributed operating profit prior to liquidation amounted to P72,000. All of the partnership assets and income were all exhausted during liquidation. Unpaid liabilities amounted to P84,000. Axe is personally insolvent and the remaining partners are solvent. The total loss on realization of assets was:
A. 360,000
B. 444,000
C. 480,000
D. 516,000