Cena, Batista, and Lashley share profits in 5:3:2 ratios. their capital accounts prior to liquidation (which is expected to result in substantial gain) are as follows: Cena P 18,000 Cr. Balance Batista P 27,000 Cr. Balance Lashley P 3,000 Dr. Balance The partners wish to distribute cash as it becomes available so that the capital accounts may be brought into the profits and loss ratio as rapidly as possible. Who is the partner to receive the first available cash and up to how much? a. Cena, up to P 54,000 b. Batista, up to P45,000 c. Batista, up to P 16,200 d. Cena, up to P16,200
Cena, Batista, and Lashley share profits in 5:3:2 ratios. their capital accounts prior to liquidation (which is expected to result in substantial gain) are as follows: Cena P 18,000 Cr. Balance Batista P 27,000 Cr. Balance Lashley P 3,000 Dr. Balance The partners wish to distribute cash as it becomes available so that the capital accounts may be brought into the profits and loss ratio as rapidly as possible. Who is the partner to receive the first available cash and up to how much? a. Cena, up to P 54,000 b. Batista, up to P45,000 c. Batista, up to P 16,200 d. Cena, up to P16,200
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 47P
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Question
Cena, Batista, and Lashley share profits in 5:3:2 ratios. their capital accounts prior to liquidation (which is expected to result
in substantial gain) are as follows:
Cena P 18,000 Cr. Balance
Batista P 27,000 Cr. Balance
Lashley P 3,000 Dr. Balance
The partners wish to distribute cash as it becomes available so that the capital accounts may be brought into the
a. Cena, up to P 54,000
b. Batista, up to P45,000
c. Batista, up to P 16,200
d. Cena, up to P16,200
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