For item nos.

20 to 21
RR, SS and TT decided to dissolve the partnership on November 30, 2011. their capital balances and profit ratio on
this date, follow:

Capital Balances Profit Ratio

RR P50, 000 40%
SS 60, 000 30%
TT 20, 000 30%

The net income from January 1, to November 30, 2011 is P45, 000. also, on this date, cash and liabilities
are P40, 000 and P90, 000 respectively. For RR to receive P55, 000 in full settlement of his interest in the
firm,

18. How much must be realized from the sale of the firm’s non-cash assets?
19. How much cash receive by SS and TT upon liquidation?
20. As of December 31, 2011, the books of Ton Partnership showed capital balances of: T P40, 000; O, P25, 000;
N, P5, 000. The partners profit and loss ratio was 3:2:1, respectively. The partners decided to liquidate and they
sold all non-cash assets for P38, 000. after settlement of all liabilities amounting P12, 000, they still have cash
of P30, 000 left for distribution. Assuming that any capital debit balance is uncollectible, the share of T in the
distribution of the P30, 000 cash would be: