PARTNERSHIP LIQUIDATION

The partners of ABS Partnership have decided to liquidate their partnership. The partnership statement of financial position just prior to liquidation is presented below: ASSETS Cash Other Assets LIABILITIES and CAPITAL 63,000 Liabilities 308,500 455,500 Alonzo, Capital 90,000 Bernardino, Capital 90,000 Castro, Capital 30,000 518.500 Total Liabilities and Capital 518,500 Total Assets The other assets include a note receivable from Alonzo in the amount of P75,000. The liabilities include a note payable to Bernardino of P40,000 and a note payable to Castro of P60,000. The partners share profits and losses in the ratio of 40:40:20, respectively. Required: Determine the amount of cash each partner will received for each of the following independent assumptions: 1. The other assets are sold for P300,000 and all the partners are solvent. 2. The other assets are sold for P270,000. Alonzo's net worth (assets minus liabilities), exclusive of his interest in the partnership is P4,000. 3. The other assets are sold for P270,000 and P24,875 of liquidation expenses are paid. Alonzo is insolvent