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

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

FINANCIAL ACCOUNTING
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:

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

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