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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:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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: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:
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:
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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