PARTNERSHIP LIQUIDATION
1. On December 31, 2020, the Statement of Financial Position of ABC Partnership with profit or loss
ratio of 6:1:3 of partners A, B and C respectively, revealed the following data:
Cash 1,000,000 Other Liabilities 2,000,000
Receivable from A 500,000 Payable to B 1,000,000
Other noncash assets 2,000,000 Payable to C 100,000
A, Capital 700,000
B, Capital (650,000)
C, Capital 350,000
On January 1, 2021, the partners decided to liquidate the partnership. All partners are legally
declared to be personally insolvent. The other noncash assets were sold for P1,500,000. Liquidation
expenses amounting to P100,000 were incurred.
1. How much cash was received by B at the end of partnership liquidation?
a. 250,000
b. 150,000
c. 290,000
d. 270,000
2. How much cash was received by C at the end of partnership liquidation?
a. 270,000
b. 150,000
c. 350,000
d. 220,000
2. On December 31, 2020, the Statement of Financial Position of ABC Partnership with profit or loss
ratio of 5:3:2 of respective partners A, B and C. showed the following information:
Cash 1,600,000 Total Liabilities 2,000,000
Noncash assets 1,400,000 A, Capital 100,000
B, Capital 500,000
C, Capital 400,000
On January 1, 2021, the partners decided to liquidate the partnership in installment. All partners are
legally declared to be personally insolvent.
As of January 31, 2021, the following transactions occurred:
Noncash assets with a carrying amount P1,000,000 were sold at a gain of P100,000.
Liquidation expenses for the month of January amounting to P50,000 were paid.
It is estimated that liquidation expenses amounting to P150,000 will be incurred for the month
of February, 2021.
20% of the liabilities to third persons were settled.
Available cash was distributed to the partners.
As of February 28, 2021, the following transactions occurred:
Remaining noncash assets were sold at a loss of P100,000.
The final liquidation expenses for the month of February amounted to P100,000.
The remaining liabilities to third persons were settled.
Remaining cash was finally distributed to the partners.
1. What is the amount of cash received by partner C on January 31, 2021?
1. On December 31, 2020, the Statement of Financial Position of ABC Partnership with profit or loss
ratio of 6:1:3 of partners A, B and C respectively, revealed the following data:
Cash 1,000,000 Other Liabilities 2,000,000
Receivable from A 500,000 Payable to B 1,000,000
Other noncash assets 2,000,000 Payable to C 100,000
A, Capital 700,000
B, Capital (650,000)
C, Capital 350,000
On January 1, 2021, the partners decided to liquidate the partnership. All partners are legally
declared to be personally insolvent. The other noncash assets were sold for P1,500,000. Liquidation
expenses amounting to P100,000 were incurred.
1. How much cash was received by B at the end of partnership liquidation?
a. 250,000
b. 150,000
c. 290,000
d. 270,000
2. How much cash was received by C at the end of partnership liquidation?
a. 270,000
b. 150,000
c. 350,000
d. 220,000
2. On December 31, 2020, the Statement of Financial Position of ABC Partnership with profit or loss
ratio of 5:3:2 of respective partners A, B and C. showed the following information:
Cash 1,600,000 Total Liabilities 2,000,000
Noncash assets 1,400,000 A, Capital 100,000
B, Capital 500,000
C, Capital 400,000
On January 1, 2021, the partners decided to liquidate the partnership in installment. All partners are
legally declared to be personally insolvent.
As of January 31, 2021, the following transactions occurred:
Noncash assets with a carrying amount P1,000,000 were sold at a gain of P100,000.
Liquidation expenses for the month of January amounting to P50,000 were paid.
It is estimated that liquidation expenses amounting to P150,000 will be incurred for the month
of February, 2021.
20% of the liabilities to third persons were settled.
Available cash was distributed to the partners.
As of February 28, 2021, the following transactions occurred:
Remaining noncash assets were sold at a loss of P100,000.
The final liquidation expenses for the month of February amounted to P100,000.
The remaining liabilities to third persons were settled.
Remaining cash was finally distributed to the partners.
1. What is the amount of cash received by partner C on January 31, 2021?
