1.The partnership of Mick, Keith, and Charlie has been dissolved and is in the process of liquidation. On July 1, 20x4, just before the second cash distribution, the assets and equities of the partnership along with residual profit sharing ratios were as follows:

Assets Liabilities and Equity

Cash . . . . . . . . . . . . . . . . .200,000 Liabilities . . . . . . . . . . . . . . . . . . .150,000

Receivables Net . . . . . . . 50,000 Mick, Capital 50% . . . . . . . . . . . 100,000

Inventories . . . . . . . . . . . .150,000 Keith, Capital 30% . . . . . . . . . . .175,000

Equipment-net . . . . . . . . 100,000 Charlie, Capital 20% . . . . . . . . .75,000

Total Assets . . . . . . . .500,000 Total Liabilities and Equity . .500,000

Assume that the available cash is distributed immediately, except for a P25,000 contingency fund that is withheld pending complete liquidation of the partnership. How much cash should be paid to Mick?

2.The partnership agreement of JJ, KK, and LL provides for the annual allocation of the business's profit or loss in the following sequence:

JJ, the managing partner, receives a bonus equal to 20 percent of the business's profit.

Each partner receives 15 percent interest on average capital investment.

Any residual profit or loss is divided equally.

The average capital investments for 20x4 were as follows: JJ, P100,000; KK, P200,000, and LL, P300,000. How much of the P90,000 partnership profit for 20x4 should be assigned to JJ?

3.On September 30,20x4, LL admits MM for an interest in his business. On this date, LL's capital account shows a balance of P158,400. The following were agreed upon before the formation of the partnership:

a. Prepaid expenses of P17,500 and accrued expenses of P5,000 are to be recognize

b. 5% of the outstanding accounts receivable of Lopez amounting to P100,000 is to be

recognized as uncollectible.

c. MM is to be credited with a one-third interest in the partnership and is to invest cash aside

from the P50,000 worth of merchandise.

The total capital of the partnership is: