1. A and B formed a partnership. The following are their contributions: A B Cash 500,000 Accounts receivable 100,000 Building 700,000 Total 600,000 700,000 A, capital 600,000 700,000 600,000 700,000 Requirement: Compute for the respective shares of the partners on the partnership loss. 3. Use the following information for the next two cases: A and B decided to liquidate their partnership. The partnership's records show the following information: B, capital Total Additional information: The accounts receivable includes a $20,000 account that is deemed uncollectible. The building is over-depreciated by P50,000. The building has an unpaid mortgage #100,000, which is assumed by the partnership. Requirement: Provide the journal entry to record the contributions of the partners in the partnership books. 2. Use the following information for the next three cases: The partnership agreement of A, B and C stipulates the following: A B C Partners A and C shall receive annual salaries of P12,000 and P8,000, respectively. A bonus of 10% of profit after salaries but before deduction of bonus shall be given to Partner A, the managing partner. Each partner shall receive 10% interest on average capital investments. Any remaining profit or loss shall be shared as follows: 40% to A and 30% each to B and C. The average capital investments of partners during the year are as follows: 100,000 60,000 120,000 Case #1: The partnership earns profit of $100,000. Requirement: Compute for the respective shares of the partners on the partnership profit. Cash Non-cash assets 80,000 Total assets 80,000 Liabilities 15,000 Loan payable to Partner A 10,000 Loan payable to Partner B 17,000 A, capital (80%) 20,000 B, capital (20%) 18,000 Total liabilities and equity 80,000 Case #1: Lump-sum liquidation All the non-cash assets are sold for P50,000. Requirement: Determine the amounts distributable to A and B in the liquidation. Case #2: Installment liquidation The non-cash assets are sold in installments. Settlement of partners' claims shall be made in installments as cash becomes available. In the first sale, three-fourths (3/4) of the non-cash assets are sold for $45,000. Requirement: Determine the amounts distributable to A and B after the first installment sale. Case #2: The partnership earns profit of $10,000. Requirement: Compute for the respective shares of the partners on the partnership profit. Case #3: The partnership incurs loss of $20,000