Problem 4:

The statement of financial position shown below was prepared just prior to the liquidation of the Ibasco
Partnership. The partners shared in the profits and losses in the ratio of 4:2:1:1.

Ibasco Partnership
Statement of Financial Position
September 30, 2013
Assets Liabilities and Equity
Cash P 50,000 Liabilities P 450,000
Other Assets 950,000 JR, Loan 37,500
Receivable from Khinne 62,500 Khinne, Capital 381,250
Miz, Capital 93,750
JR, Capital 50,000
Annie, Capital 50,000
TOTAL ASSETS: P 1,062,500 TOTAL LIABS & P 1,062,500
EQUITY

Other assets are sold for P 1,150,000 and available cash is distributed to the proper parties. Cash is
distributed in final settlement.

Questions to answer:
1. How much is the share of Annie in the gain?
2. How much cash did Khinne received?
3. Who among the partners received the smallest amount of cash?