Partners A, B and C decided to liquidate their partnership.

A summary of the partnership’s statement of

financial position is shown below:

Cash 50,000
Noncash assets 1,200,000
Total 1,250,000

Accounts payable 100,000

Payable to A 50,000
A, Capital (50%) 540,000
B, Capital (30%) 360,000
C, Capital (20%) 200,000
Total 1,250,000

If a cash priority program is prepared, which partner is paid first and how much is the total payments to
that partner before all partners will share on the available cash based on their profit or loss ratios?
a. A, ₱20,000 c. B, ₱96,000
b. B, ₱90,000 d. B, ₱60,000