1. Oliver, Patrick & Quincy LLP, is beginning liquidation. It has no cash, total liabilities of P60,000 including a P10,000 loan payable to Patrick, and equal partners' capital account balances of P40,000. The income-sharing ratio is 5:1:4, respectively. If a portion of the noncash assets with a carrying amount of P140,000 realizes P120,000, the cash payment that Patrick receives

A. P20,000

B. P53,000

C. P44,000

D. Some other amount

2. The balance sheet given below is presented for the partnership of Janet, Anton, and Millet:

Cash P60,000

Liabilities P80,000

Total P210,000

Noncash assets 150,000

Janet, capital 80,000

Anton, capital 30,000

Millet, capital 20,000

Total P210,000

The partners are share profits and losses in the ratio of 5:3:2, respectively. The partners agreed to dissolve the partnership after selling the other assets for P50,000. On dissolution of the partnership, Janet should receive:

A. P0

B. P10,000

C. P30,000

D. P80,000

3. who share profits and losses in the ratio 5:3:2, respectively:

Cash P60,000

Other assets 640,000

Liabilities 140,000

Anders, Capital 280,000

Barnes, Capital 28,000

Crowley, Capital 252,000

The partners decide to liquidate the partnership. The other assets are sold for P500,000. How should the available cash be distributed?

A. Anders, P210,000; Barnes, P-0-; Crowley, P210,000

B. Anders, P200,000; Barnes, P-0-; Crowley, P220,000

C. Anders, P210,000; Barnes, P-0-; Crowley, P224,000

D. Anders, P280,000; Barnes, P28,000; Crowley, P252,000

4. Phil, Harry, and Bill are partners in a company that is being liquidated. The three partners have capital account balances of P35,000, P28,000, and P27,000. In addition, the partnership previously loaned Bill P5,000 and Phil had loaned the partnership P10,000. Assuming the right of offset is applied, what is the net capital position of (1) Phil, (2) Harry, and (3) Bill when the liquidation begins?

A. (1) P45,000; (2) P28,000; (3) P22,000

B. (1) P35,000; (2) P28,000; (3) P27,000

C. (1) P40,000; (2) P28,000; (3) P17,000

D. (1) P25,000; (2) P28,000; (3) P32,000

5. Rick, Mary, and Fran are partners in a company that is being liquidated. The three partners have capital account balances of P46,000, P39,000, and P29,000. In addition, the partnership previously loaned Mary P15,000 and Fran had loaned the partnership P10,000. Assuming the right of offset is applied, what is the net capital position of (1) Rick, (2) Mary, and (3) Fran when the liquidation begins?

A. (1) P46,000; (2) P24,000; (3) P39,000

B. (1) P46,000; (2) P39,000; (3) P29,000

C. (1) P46,000; (2) P29,000; (3) P44,000

D. (1) P46,000; (2) P54,000; (3) P19,000

6. In a simple partnership liquidation, the last remaining cash distribution should be made according to the ratio of

A. The individual partner's capital accounts, increased by partner loans to the partnership.

B. The individual partner's capital accounts, increased by partnership loans to the partners and decreased by partner loans to the partnership.

C. The individual partner's capital accounts, decreased by partnership loans to the partners and increased by partner loans to the partnership.

D. The individual partner's profit and loss agreement.

7. If a partner with a debit capital balance during liquidation is personally solvent, the

A. Partnership will loan the partner enough cash to absorb the debit balance.

B. Other partners will give the partner enough cash to absorb the debit balance.

C. Partner's debit balance will be allocated to the other partners.

D. Partner must invest additional assets in the partnership.