Problem 3:

The partnership accounts of Kevin, Rosi, and Pia who share earnings in a 4:3:3 ratio are as follows on
Dec. 31, 2010
Kevin, drawing (debit) P 30,000
Rosi, drawing (credit) 10,000
Pia, Loan 50,000
Kevin, Capital 160,000
Rosi, Capital 130,000
Pia, Capital 140,000

Total assets amounted to P 700,000 including P 80,000 cash and liabilities total P 240,000. The
partnership was liquidated in January 2011 and Rosi received 110,000 cash payment in the liquidation.

Determine the following:

1. The loss on realization.
2. The amount of cash received by Pia.