Partners A, B, C, and D have been operating ABCD Partnership for ten years. Due...
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Partners A, B, C, and D have been operating ABCD Partnership for ten years. Due to a significant reduction in the demand for their product over recent years, the partners have agreed to liquidate the partnership. At the time of liquidation, balance sheet accounts consisted of cash, P103,500; noncash assets, P300,000; liabilities to outsiders, P60,000; capital credit balances for partners A, B, and C, P90,000, P150,000, and P120,000, respectively; and a debit capital balance for partner D of P16,500. Partners share equally in income and loss. It is estimated that the administrative cost of liquidation will total P4,500. While preparing for liquidation, an unrecorded liability of P7,500 was discovered.
Requirements:
1. Assuming the available cash of P103,500 was distributed, how much must be the share of partner B?
2. For how much must the noncash assets be sold for partner D to receive at least P5,000?
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