The account balances shown below was prepared just prior to the liquidation of the partnership of Jack, Lozada, Mike, Neri. Partners share in the profits and losses in the ratio 4:2:1:1 Cash P50,000 Liabilities P450,000 Other Assets 950,000 Neri, Loan 37,500 Receivable 62,500 Jack, Capital 381,250 from Jack Lozada, Capital 93,750 Mike, Capital 50,000 Neri, capital 50,000 Other assets are sold for P500,000 and available cash is distributed to the proper parties. Compute for the following independent of each other. 1. How much will Jack receive for his capital, if Lozada is insolvent? 2. How much cash will Neri receive upon liquidation for his capital if no one is insolvent?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The account balances shown below was prepared just prior to
the liquidation of the partnership of Jack, Lozada, Mike, Neri.
Partners share in the profits and losses in the ratio 4:2:1:1
Cash
P50,000
Liabilities
P450,000
Other Assets
950,000
Neri, Loan
37,500
Receivable
62,500
Jack, Capital
381,250
from Jack
Lozada,
93,750
Capital
Mike, Capital 50,000
Neri, capital
50,000
Other assets are sold for P500,000 and available cash is
distributed to the proper parties. Compute for the following
independent of each other.
1. How much will Jack receive for his capital, if Lozada is
insolvent?
2. How much cash will Neri receive upon liquidation for his
capital if no one is insolvent?
Transcribed Image Text:The account balances shown below was prepared just prior to the liquidation of the partnership of Jack, Lozada, Mike, Neri. Partners share in the profits and losses in the ratio 4:2:1:1 Cash P50,000 Liabilities P450,000 Other Assets 950,000 Neri, Loan 37,500 Receivable 62,500 Jack, Capital 381,250 from Jack Lozada, 93,750 Capital Mike, Capital 50,000 Neri, capital 50,000 Other assets are sold for P500,000 and available cash is distributed to the proper parties. Compute for the following independent of each other. 1. How much will Jack receive for his capital, if Lozada is insolvent? 2. How much cash will Neri receive upon liquidation for his capital if no one is insolvent?
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