1. Mactal, Macadang and Pangan are partners with capital balances of P350,000, P250,000 and P350,000 and sharing profits 30%, 20% and 50%, respectively. Partners agreed 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. Pangan is personally insolvent, but the other two partners are able to meet any indebtedness to the firm. On the remaining claim against the partnership, Mactal is to absorb:
1. Mactal, Macadang and Pangan are partners with capital balances of P350,000, P250,000 and P350,000 and sharing profits 30%, 20% and 50%, respectively. Partners agreed 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. Pangan is personally insolvent, but the other two partners are able to meet any indebtedness to the firm. On the remaining claim against the partnership, Mactal is to absorb:
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 59P
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Transcribed Image Text:1. Mactal, Macadang and Pangan are partners with capital balances of P350,000,
P250,000 and P350,000 and sharing profits 30%, 20% and 50%, respectively.
Partners agreed 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. Pangan is personally insolvent, but the other two partners are able to
meet any indebtedness to the firm. On the remaining clainm against the partnership,
Mactal is to absorb:
Transcribed Image Text:2. Partners Ong, Rodriguez, Pamittan and Reyes who share profits and losses at 30%,
30%, 20% and 20%, respectively, decided to liquidate. All partnership assets are to
be converted into cash. Before liquidation, the condensed statement of financial
position follows:
P 100,000
1,800,000
P 750,000
60,000
50,000
Cash
Liabilities
Other Assets
Rodriguez, Loan
Reyes, Loan
Ong, Capital
Rodriguez, Capital
Pamittan, Capital
420,000
315,000
205,000
Reyes, Capital
100,000
P1,900,000
P1,900,000
The non-cash assets realized P800,000, resulting to a loss of P1,000,000. All the
partners are solvent, and can contribute any additional cash to cover any deficiency.
In the process of liquidation, deficiencies will occur and will require additional
investment as follows:
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