If the total cash available for distribution to the partners as settlement of their claims in the partnership was P278,000, for how much were the non-cash assets sold?
Transcribed Image Text:16. Below is the financial position of BED of
Roses Partnership before liquidation:
P 78.000
272.000
P350,000
Cash
Other Assets
Total
P 85,000
15,000
Liabilities
Payable to Bautista
Bautista. Capital
Elvena, Capital
Dizon, Capital
Total
60.000
70.000
120.000
P350.000
Bautista. Elvena and Dizon share profits and
losses in the ratio 5:3:2 respectively. If the
total cash available for distribution to the
partners as settlement of their claims in the
partnership was P278.000, for how much
were the non-cash assets sold?
A. P285,000
В. Р293,000
c.
C. P300,000
O D. P378,000
Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.
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