Reference no: EM132944110

Questions -

Q1. CC, DD, and EE are partners sharing profits and losses in the ratio of 4:4:2. During the year their investments and withdrawals are as follows:

Investments Withdrawals

CC 20,000 10,000

DD 40,000 20,000

EE 80,000 20,000

On December 31, 2019, the partners decided to liquidate the business. After exhausting partnership assets, liabilities of P40,000 remain unpaid. CC is personally insolvent but DD and EE are personally solvent.

What is the amount of cash EE will receive upon liquidation?

Q2. Kaya, Koto and Brod are partners. On January 3, 2019, their capital balances and profit and loss ratio are as follows:

Capital P & L Ratio

Kaya 20,000 50%

Koto 30,000 30%

Brod 50,000 20%

Brod withdrew P10,000 during the year. Net loss on December 31, 2019 totaled P15,000. Hence, the partners decided to liquidate the partnership. There are unpaid liabilities of P18,000 and cash on hand of P5,000. Assuming Brod received P30,000 in the initial distributions of cash, what is the amount received by Koto at this point?

Q3. The accounts of the partnership of Elias, Cruz and Pido at the end of its fiscal year on September 20, 2019 are as follows: Cash, P15,000; Other assets, P130,000; Receivable - Cruz, P5,000; Liabilities, P50,000; Payable - Pido, P10,000; Elias capital, P45,000; Cruz capital, P30,000; and Pido capital, P15,000. The profit and loss ratio of Elias, Cruz and Pido are 30%, 50% and 20% respectively.

If Pido received P18,000 on the first distribution of cash, what was the cash realized from the initial sale of assets?