Notes in Acstran

29. H, I and J are partners in a textile distribution business, sharing profits and losses
equally. On December 31, 2020, the partnership capital and the partners' drawing were
as follows:
A B C Total
Capital P100,000 P80,000 P300.000 P480.000
Drawing 60,000 40,000 20,000 120,000
The partnership was unable to collect on its trade receivables, and it was forced to
liquidate. The
operating profits for 2013 amounted to P72,000, and was all exhausted including the
partnership
assets. Unsettled creditors' claim at December 31,2013 amounted to P84,000. B and C
have
substantial private resources, but A has no available free assets.
The final cash distribution to C was:
a. P162,000 b. P108,000
c. P84,000 d. P78,000 Guerrero 2013
30. As of December 31,2013, the books of KAMI Partnership showed capital balances
of: A, P40,000; M,
P25,000; E, 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 P37,000. After settlement of
all liabilities
amounting to P12,000, they still have cash of P28,000 left for distribution. Assuming that
any
capital debit balance is uncollectible, the share of A in the distribution of the P28,000
cash
would be:
a. P17,800 c. P19,000
b. P18,000 d. P17,000 Guerrero 2013
Partnership Liquidation & Incorporations
Partnership Liquidation & Incorporations - MCQ Problems Page 13
Loss absorption by solvent partner
31. Hilda, Joshua and Lee are partners with capital balance of P350,000, P250,000 and
P350,000 and
sharing profits 30%, 20% and 50% respectively. Partners agree to dissolve the business
and
upon liquidation, all of the partnership assets are sold and sufficient cash is realized to
pay all the
claims except one for P50,000. Li is personally insolvent, but the other two partners are
able to
meet any indebtedness to the firm. On the remaining claim against the partnership,
Gilbert is to
absorb.
a. P40,000 c. P30,000
b. P15,000 d. P25,000