PARTNERSHIP LIQUIDATION:

Read and analyze the

following problem and answer the questions asked. Show your computations.

Cash P0

Non-Cash assets 85,000

Total

Assets P 85,000

Liabilities 25,000

Loan payable to Partner F 11,000

Loan payable to Partner G 16,000

F, Capital (60% in P/L) 21,000

G, Capital (40% in P/L) 12,000

Total

Liabilities and Equity P 85,000

Case # 1: Lump-sum

liquidation

All the non-cash assets are

sold for P53,000.

Case # 2: Installment

Liquidation

The non-cash assets are sold

in installments. Settlement of partners' claims shall be made in installments

as cash becomes available. In the first sale, three-fourths (3/4) of the

non-cash assets are sold for P46,000.

Case # 3: Installment

Liquidation

The non-cash assets are sold

in installments. Settlement of partners' claims shall be made in installments

as cash becomes available. In the first sale, 90% of the non-cash assets are

sold for P60,000.

1. Under Case # 1: how much

is the amount distributable to F? A. 13,800 B. 12,800 C. 14,800 D. 15,800

2. Under Case # 1: how much

is the amount distributable to G? A, 16,200 B. 13,200 C. 15,200 D. 15,800

3. Under Case # 2: how much

is the amount distributable to F after the 1st sale? A. 8,600 B. 12,400 C. 21,000 D.9,600

4. Under Case # 2: how much

is the amount distributable to G after the 1st sale? A. 8,600 B. 12,400 C. 21,000 D.9,600

5. Under Case # 3: how much

is the amount distributable to F after the 1st sale? A. 17,000 B. 18,000 C.35,000 D. 19,100

6. Under Case # 3: how much

is the amount distributable to G after the 1st sale? A. 17,000 B. 18,000 C.35,000 D. 19,100