On April 30, 2021, how much cash will be distributed to the partners?
19. Following is the balance sheet of the WXYZ
to be liquidated: Cash – P6,000; Other Assets – P126,000; Liabilities – P12,400; W, Loan – P12,000; X, Loan
– P14,400; Z, Loan – P9,600; W, Capital (25%) – P16,200; X, Capital (25%) – P12,000; Y, Capital (25%)
– P37,700; Z, Capital (25%) – P17,700. During the month of April 2021, assets having book value of
P18,000 are sold at a loss of P2,400. Liquidation expenses of P600 are paid as well as P7,200 of the
liabilities. Of the liabilities shown in the balance sheet, P240 represents salary payable to Z and P160
represents salary payable to Y. On April 30, 2021, how much cash will be distributed to the partners?
a. W – 0; X – 0; Y – 0; Z – P9,000
b. W – P1,950; X – P1,950; Y – P1,950; Z – P1,950
c. W – 0; X – 0; Y – 0; Z – P1,950
d. W – 0; X – 0; Y – P9,000; Z – 0
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