PARTNERSHIP LIQUIDATION

As of December 31, the books of AME Partnership showed capital balances of: A- P40,000; M-P25,000; and E-P5,000. The partners' profit and loss ratio was 3:2:1, respectively. The partners decided to dissolve and liquidate. They sold all the non-cash assets for P37,000 cash. After settlement of all liabilities amounting to P12,000, they still have P28,000 cash left for distribution

The loss on the realization of the non-cash assets was:

a.40,000

b.42,000

c.44,000

d.45,000

Assuming that any partner's capital debit balance is uncollectible , the share of A in the P28,000 cash for distribution would be:

a.19,000

b.18,000

c.17,800

d.40,000