Question $7$

Jiraiya, Rock Lee, and Sarada are partners in textile distribution business, sharing profits and losses equality. On December $31,2021$ the partnership capital

and partners drawings were as follows:

The partnership was unable to collect on trade receivable and was forced to liquidate. Operating profit in $2021$ amounted to P$72,000$ which was all exhausted

including the partnership assets. Unsettled creditors' claims at December $31,2021$ totaled P$84,000.$ Rock Lee and Sarada have substantial private resources

but Jiraiya has no personal assets.

Final cash distribution to Sarada was

P$78,000$

P$84,000$

P$108,000$

P$162,000$