Question 1:

On June 30,2019, ABC partnership shows that A, B and C have capital balances after profit or loss of 500,000, 300,000 and 200,000 with profit or loss ratio of 1:3:6. Loss incurred from January 1- June 30, 2019 is P 150,000. Before liquidation, the partnership has P 150,000 of total liabilities. The partnership has a payable to B of P 30,000 and C of 10,000. The cash balance before liquidation is 20% of the proceeds received from the realization of the non-cash assets. A and B are insolvent while C is personally solvent.

1. If the cash balance after realization of the non-cash assets is P 600,000, how much did B received in settlement of his total interest?
2. If the cash balance after realization of the non-cash assets is P 600,000, how much is the share of C in the gain/ loss on realization?
3. If the cash balance after realization of the non-cash assets is P 600,000, how much did A receive in the final distribution of his interest?

Question 2:

ABC Partnership have the following balances before liquidation: Cash 250,000 Accounts payable 50,000 Non-cash assets 500,000 A, loan 10,000 A, Capital (40%) 190,000 B, Capital (45%) 350,000 C, Capital (15%) 150,000