Question 1: Jo, Lee and Bee are partners who share profits and losses in the ratio of 35:25:40 to Jo, Lee and Bee respectively. The statement of Financial Position of the partnership on December 31, 2017 is as follows:

ASSETS

Cash                                        P8,000

Noncash assets                       110,000

LIABILITIES AND CAPITAL

Liabilities                                 P18,000

Loan from Lee                             2,000

Jo, Capital                                 32,700

Lee, Capital                               23,500

Bee, Capital                              41,800

On January 1, 2018, the partners decided to liquidate. For the month of January, some assets were sold for a loss of P2,000. Liabilities of P15,000 were paid. Payment to Partners Jo, Lee and Bee from the initial sale of assets were P150, P2,250 and P4,600 respectively. Cash withheld for possible liquidation expenses and unrecognized liabilities amounted to P1,250.

What was the book/carrying value of the noncash assets sold in January?

A. 28,250

 B. 26,250

C. 20,250

D. 18,250

Question 2: Mah, Dah and Lih have capital balances of P600,000, P1,000,000 and P360,000 each respectively and they share profits in the respective ratio of 4:2:1. Dah received P520,000 as a result of liquidating the partnership. The partnership also incurred P10,000 liquidation expenses and withheld P2,000 for the unpaid liabilities of the partnership.

How much will Lih receive?

A. 240,000

B. 150,000

C. 120,000

D. 0

What is the loss on realization?

A. 1,680,000

B. 1,670,000

C. 1,320,000

D. 1,310,000