Statement of Liquidation

Dindo, Eric and Fumaren are partners in Defender Partnership with profit or loss sharing ratio of 6:1:3. Due to disagreement, the partners decided to liquidate their business with pre-liquidation statement of financial position presented below:

Cash 3,000,000

Noncash assets 17,000,000

Liabilities 10,000,000

Dindo, Capital 1,000,000

Eric, Capital 4,000,000

Fumaren, Capital 5,000,000

The following additional data are provided:

All partners are legally declared as personally insolvent.

All non-cash assets are sold during the liquidation process.

Liquidation expenses amounting to P2,000,000 were paid.

Eric receives a total of P2,500,000 at the end of liquidation.

Required:

1. What is the net proceeds from the sale of all noncash assets?

2. What is the amount received by Fumaren at the end of liquidation?