The following are the capital balances and profit and loss ratios of the partners Mona, Nona, and Ona: Capital Profit & Loss Ratio Mona- P 20,000 20% Nona 10,000 30% Ona- 5,000 50% Total- P 35,000 100% After realization of the assets and payment of liabilities, the cash available for distribution was P 18,000. Any capital deficiency is uncollectible. 6. What was the loss on realization? a. P 15,000. C. P 17,000. b. P 16,000. d. P 18,000. 7. How should the cash be distributed? a. Mona, P 3,600; Nona, P 5,400; and Ona, P 4,000. b. Mona, P 6,000; Nona, P 6,000; and Ona, P 6,000. c. Mona, P 15,200; Nona, P 2,800; and Ona, P 0. d. Mona, P 18,000; Nona, P 0; and Ona, P 0.

The following are the capital balances and profit and loss ratios of the partners Mona, Nona, and Ona: Capital Profit & Loss Ratio Mona- P 20,000 20% Nona 10,000 30% Ona- 5,000 50% Total- P 35,000 100% After realization of the assets and payment of liabilities, the cash available for distribution was P 18,000. Any capital deficiency is uncollectible. 6. What was the loss on realization? a. P 15,000. C. P 17,000. b. P 16,000. d. P 18,000. 7. How should the cash be distributed? a. Mona, P 3,600; Nona, P 5,400; and Ona, P 4,000. b. Mona, P 6,000; Nona, P 6,000; and Ona, P 6,000. c. Mona, P 15,200; Nona, P 2,800; and Ona, P 0. d. Mona, P 18,000; Nona, P 0; and Ona, P 0.

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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Question

Item Nos. 6 and 7 are based on the following information:
The following are the capital balances and profit and loss ratios of the
partners Mona, Nona, and Ona:
Capital
Profit & Loss Ratio
Mona-
P 20,000
20%
Nona
10,000
30%
Ona-
5,000
50%
Total--
P 35,000
100%
After realization of the assets and payment of liabilities, the cash
available for distribution was P 18,000. Any capital deficiency is uncollectible.
6. What was the loss on realization?
a. P 15,000.
C.
P 17,000.
b. P 16,000.
d. P 18,000.
7. How should the cash be distributed?
b.
a. Mona, P 3,600; Nona, P 5,400; and Ona, P 4,000.
Mona, P 6,000; Nona, P 6,000; and Ona, P 6,000.
c. Mona, P 15,200; Nona, P 2,800; and Ona, P O.
d. Mona, P 18,000; Nona, P 0; and Ona, PO.

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