On April 30, 2021, how much cash will be distributed to the partners?
19. Following is the balance sheet of the WXYZ Partnership at March 31, 2021, when the partnership is
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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