1.
EB, WW and FF agree to sell construction tools for a period of one month. BB agrees to construct a stand on the front of the lawn of FF. FF will be paid P2,500 for cleaning up the lawn after the onemonth selling period. 00, WW and FF decide that net inoomel if any will be allocated first by the F2,500 payment to FF and then by a 40% commission on indiyidual sales. The balance will be distributed T505 to BB and 25% to WW. They agree that a cash box will complicate the matters and that all purchases and sales transactions will be outofpocitet and the responsibility of the indiyidual. Sales to 00, WW and FF are to be at oostl except that the ending inyentory may be purchased at 505-5 of cost. All other sales are to he made at 100% mark-up on cost. The activity of the joint operation is as follows: a. BB construct the stand on the front ofthe lawn at a oost of P10,000; b. 00 pays for P100,000 for yarious construction tools. FF pays P5,000 for permit to operate the concession or business; c. 00- purchases additional construction tools for FIE-0,000 using P50.000 contributed by WW and P100000 of personal money; d. Sales for the period were as follows: BB, P110000; WW, F260,000; and FF; P500120; e. FF pays H.000 for ofce supplies and these are distributed equally between BB. WW, and FF for their personal use at home. FF agrees to pay P5,000 for the stand. f. The balance of construction tools inventory was taken by BB. Requirement: Determine the amount to be receiyed {paid} by 00 during cash settlement. 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.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
