133 134 PROBLEM 4 135 136 On December 31, 2018, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 137 5:3:2 of respective partners A, B and C. showed the following information: 138 2,000,000 139 Cash 1,600,000 Total Liabilities 140 Noncash assets 1,400,000 A, Capital 100,000 B, Capital 500,000 141 142 C, Capital 400,000 143 On January 1, 2019, the partners decided to liquidate the partnership in installment. All partners are legally 144 declared to be personally insolvent. 145 As of January 31, 2019, the following transactions occurred: 146 Noncash assets with a carrying amount P1,000,000 were sold at a gain of P100,000. 147 Liquidation expenses for the month of January amounting to P50,000 were paid. 148 It is estimated that liquidation expenses amounting to P150,000 will be incurred for the month of 149 February, 2019. 150 20% of the liabilities to third persons were settled. 151 Available cash was distributed to the partners. 152 153 As of February 28, 2019, the following transactions occurred: 154 Remaining noncash assets were sold at a loss of P100,000. 155 The final liquidation expenses for the month of February amounted to P100,000. 156 The remaining liabilities to third persons were settled at a compromise amount of P1,500,000. 157 Remaining cash was finally distributed to the partners. 158 159 8 What is the amount of cash received by partner C on January 31, 2019? 160 260,000 161 240,000 162 300,000 163 350,000 164 9 What is the share of B in the maximum possible loss on January 31, 2019? 165 A. 275,000 166 110,000 167 C. 120,000 168 D. 165,000 169 170 10. What is the amount of total cash withheld on January 31, 2019? 171 A. 550,000 172 1,600,000 173 C. 1,750,000 174 D. 1,700,000 Sheet 1