The following balance sheet summary, together with residual profit-sharing ratios, was developed on April 1, 2011, when the Dazzle, Enigma, and Faceless partnership began its liquidation: CashP140,000LiabilitiesP 60,000Accounts receivable60,000Loan from Enigma20,000Inventories85,000Dazzle capital (20%)75,000Plant assets—net200,000Enigma capital (40%)200,000Loan to Dazzle25,000Faceless capital (40%)155,000 P510,000 P510,000 If available cash except for a $5,000 contingency fund is distributed immediately, Dazzle, Enigma, and Faceless, respectively, should receive:PLEASE DON'T COPY SOLUTION FROM CHEGGa. P10,000, P60,000, and P15,000b. P0, P70,000, and P5,000

The cash distribution to the partners is always paid to the partners on the liquidation process…

Answered: If available cash except for a $5,000…

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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The following balance sheet summary, together with residual profit-sharing ratios, was developed on April 1, 2011, when the Dazzle, Enigma, and Faceless partnership began its liquidation:

Cash	P140,000	Liabilities	P 60,000
Accounts receivable	60,000	Loan from Enigma	20,000
Inventories	85,000	Dazzle capital (20%)	75,000
Plant assets—net	200,000	Enigma capital (40%)	200,000
Loan to Dazzle	25,000	Faceless capital (40%)	155,000
	P510,000		P510,000

If available cash except for a $5,000 contingency fund is distributed immediately, Dazzle, Enigma, and Faceless, respectively, should receive:
PLEASE DON'T COPY SOLUTION FROM CHEGG

a. P10,000, P60,000, and P15,000
b. P0, P70,000, and P5,000

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