On June 11, 2020, Moly, Nora and Olga form a partnership investing cash of P15,000, P13,500, and P4,200, respectively. The partners share profits of 3:2:2 and on August 30, 2020, they have cash of P1,000, and other assets of P47,500; liabilities are P25,600. On this date they decide to go out of business and sell all the assets for P30,000. Olga has personal assets of P1,500 that may, if necessary, be used to meet partnership obligations. How much should be distributed to Nora upon liquidation of the partnership? A. P4,000 B. P2,040 C. P4,860 D. Zero
On June 11, 2020, Moly, Nora and Olga form a partnership investing cash of P15,000, P13,500, and P4,200, respectively. The partners share profits of 3:2:2 and on August 30, 2020, they have cash of P1,000, and other assets of P47,500; liabilities are P25,600. On this date they decide to go out of business and sell all the assets for P30,000. Olga has personal assets of P1,500 that may, if necessary, be used to meet partnership obligations. How much should be distributed to Nora upon liquidation of the partnership? A. P4,000 B. P2,040 C. P4,860 D. Zero
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On June 11, 2020, Moly, Nora and Olga form a partnership investing cash of P15,000,
P13,500, and P4,200, respectively. The partners share profits of 3:2:2 and on August
30, 2020, they have cash of P1,000, and other assets of P47,500; liabilities are
P25,600. On this date they decide to go out of business and sell all the assets for
P30,000. Olga has personal assets of P1,500 that may, if necessary, be used to meet
partnership obligations. How much should be distributed to Nora upon liquidation of the
partnership?
A. P4,000
В. Р2,040
C. P4,860
D. Zero
Choice A
Choice B
Choice C
Choice D
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