AK, BS and CM are partners in a business being liquidated. The partnership had cash of P132,000, noncash assets with a book value of P1,584,000 and liabilities of P1,039,500. The following data relates to the partners as of June 1, 2020. AK has capital balance of P775,500, personal assets of P165,000 and personal liabilities of P82,500. BS extended a loan to the partnership in the amount of P82,500, has a deficit of P231,000, personal assets of P247,500 and personal liabilities of P99,000. CM has a capital balance of P49,500, personal assets of P412,500 and personal liabilities of P247,500. Their profit and loss ratio is 3:1:1, AK, BS and CM, respectively. On June 12, 2020, assets with book value of P495,000 were sold for P330,000 cash. The proceeds were used to pay off liabilities of the partnership. During the remainder of June, no additional assets were realized and outside creditors began to pressure the partnership for payment. On July 3, the partners agreed to contribute personal assets, to whatever extent possible, in order to eliminate their respective deficits. Shortly thereafter, assets with book value of P330,000 and a fair value of P379,500 were distributed to AK. Assuming additional noncash assets with book value of P660,000 were sold in July for P891,000. How much cash would be distributed to CM?
AK, BS and CM are partners in a business being liquidated. The
BS extended a loan to the partnership in the amount of P82,500, has a deficit of P231,000, personal assets of P247,500 and personal liabilities of P99,000. CM has a capital balance of P49,500, personal assets of P412,500 and personal liabilities of P247,500. Their
On June 12, 2020, assets with book value of P495,000 were sold for P330,000 cash. The proceeds were used to pay off liabilities of the partnership. During the remainder of June, no additional assets were realized and outside creditors began to pressure the partnership for payment. On July 3, the partners agreed to contribute personal assets, to whatever extent possible, in order to eliminate their respective deficits. Shortly thereafter, assets with book value of P330,000 and a fair value of P379,500 were distributed to AK. Assuming additional noncash assets with book value of P660,000 were sold in July for P891,000.
How much cash would be distributed to CM?
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