1.

Mickey, Donald, and Minnie are partners sharing profit and loss in the ratio of 2:1:1,
respectively. Their capital balances are P400,000 for Mickey, P200,000 for Donald and
P100,000 for Minnie. Claims of suppliers amounted to 500,000 including the loan
extended by Minnie, P50,000. The cash balance amounted to P300,000 and it increased
to P1,050,000 as a result of the sale of the non-cash assets.

● How much cash was received by Donald in the final settlement?

162,500

● How much cash was received by Mickey in the final settlement?

325,000

● How much was the non-cash assets of the partnership?

900,000

● How much was the loss from sale of non-cash assets?

150,000

● How much was the cash proceeds from sale of non-cash assets?
750,000

● How much cash will Minnie receive?

112,500

2. As of December 31, the books of AME 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 dissolve and liquidate. They sold all the non-cash
assets for P37,000 cash. After settlement of all liabilities amounting to P12,000, they still
have P28,000 cash left for distribution.

● The loss on the realization of the non-cash assets was

P42,000

● Assuming that any partner’s capital debit balance is uncollectible, the share of A
in the 28,000 cash for distribution would be
P17,800

3. The statement of financial position of the partnership A, B, and C shows: Cash, P22,400;
Other Assets, P212,000; Liabilities, P38,400; A, Capital (50%) P76,000; B, Capital (25%)
P64,000, and C, Capital (25%) P56,000.

● If B received a total of P31,000 from partnership liquidation, how much was the
loss on realization?
P127,000