On January 1, 2018, YoLanDa Partnership entered into liquidation. The partners capital balances on this...
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Accounting
On January 1, 2018, YoLanDa Partnership entered into liquidation. The partners capital balances on this date were as follows: Yo (25%) P2,500,000; Lan (35%) P5,400,000; Da (40%) P3,700,000. The partnership has liabilities amounting to P4,400,000, including a loan from Lan P600,000. Cash on hand before the start of liquidation is P800,000.
With the information given, answer the following independent situations:
Case 1
Noncash assets amounting to P7,400,000 were sold at a book value and the rest of the noncash assets were sold at a loss of P4,200,000. How much cash will be distributed to the partners?
a. P4,400,000
b. P7,400,000
c. P8,000,000
d. P11,800,000
Case 2
After exhausting the noncash assets of the partnership, assuming all partners has personal assets more than their liabilities. How much cash must be invested by the partners to satisfy the claims of the outside creditors and to pay the amount due to the partners?
a. P3,680,000
b. P3,800,000
c. P4,360,000
d. P4,480,000
Case 3
If Lan received P2,255,000, how much was the loss from the realization of the noncash assets? a.P5,255,000
b. P9,945,000
c. P10,525,000
d. P10,700,000
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