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: CashP140,000LiabilitiesP 60,000Accounts receivable60,000Loan from Enigma20,000Inventories85,000Dazzle capital (20%)75,000Plant assets—net200,000Enigma capital (40%)200,000Loan to Dazzle25,000Faceless 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 P15,000b. P0, P70,000, and P5,000

Liquidation refers to the process of winding up and closing down a business or organization,…

Answered: The following balance sheet summary,…

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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