Partnership Dissolution

Problem 1

A partnership had the following condensed balance sheet:

Assets Liabilities and Capital

Cash 2,500.00 Liabilities 7,500.00
Noncash Assets 32,500.00 XX Capital (80%) 20,000.00
XX Loan 2,500.00 YY Capital (20%) 10,000.00
Total 37,500.00 37,500.00

The percentages in parentheses after the partner's capital balances represent their respective
interests in profits and losses. The partners agree admit ZZ as a member of the firm.

1. ZZ purchases a ¼ interest in the firm. One fourth of each partner's capital is to be

transferred to the new partner. ZZ pays the partners which is divided between them in
proportion to the equities given up. The capital balances of XX, YY, and ZZ after should
be:

XX YY ZZ XX YY ZZ
a. 15,000 7,500 9,375 c. 15,000 7,500 7,500
b. 12,500 12,500 12,500 d. 10,000 10,000 10,000

Problem 2

WW desires to purchase a one-fourth capital and profit and loss interest in the partnership of EE,
GG, DD. The three partners agree to sell WW a one fourth of their respective capital and profit and
loss interest in exchange for a total payment of 40,000. The capital accounts and the respective
percentage interest in profits and losses immediately before the sale to WW are:

EE, capital (60%) 80,000.00

GG, capital (30%) 40,000.00
DD, capital (10%) 20,000.00
140,000.00
Total

All other assets and liabilities are fairly valued and with no adjustments is to be recorded prior to
the acquisition by WW immediately after WW’s acquisition, what would be the capital balances of
EE, GG and DD respectively?
a. 60,000; 30,000; 15,000 c. 77,000; 38,500; 19,500
b. 69,000; 34,500; 16,500 d. 92,000; 46,000; 22,000
Problem 3

The following condensed balance sheet is presented for the partnership of AA and BB who share
profit and losses in the ratio of 6:4 respectively:
Cash 33,750.00
Other Asset 468,750.00
BB, loan 22,500.00
525,000.00
90,000.00
Accounts Payable
AA, capital 261,000.00
BB, capital 174,000.00
525,000.00

The assets and liabilities are fairly valued on the balance sheet. AA and BB decide to admit CC as a
new partner with 20% interest. No bonus or goodwill is to be recorded. What amount should CC
contribute or invest in cash and other assets?

a. 82,500 c. 105,000
b. 87,000 d. 108,750

Problem 4

XX and YY are partners who have capital balances of 300,000 and 240,000 sharing profits in the
ratio of 3:2. ZZ is admitted as a partner upon investing 250,000 for a 25% interest in the firm,
profits are to be allocated equally. Given the choice between goodwill and bonus method, ZZ will:

a. Prefer bonus method due to ZZ’s gain of 17,500

b. Prefer bonus method due to ZZ’s gain of 70,000
c. Prefer goodwill method due to ZZ’s gain of 70,000
d. Be indifferent for the goodwill and bonus methods are the same

Problem 5

DD, EE and FF are partners sharing profits and losses of 50%, 30% and 20% respectively. The
December 31, 2019 balance sheet of the partnership before any profit allocation was summarized
as follows:
ASSETS LIABILITES AND CAPITAL

Cash 60,000.00 Accounts Payable 4,000.00

Inventories 40,000.00 FF, loan 3,000.00
Furn. & Fixt (net) 50,000.00 DD, capital 70,000.00
Patent 15,000.00 EE, capital 60,000.00
FF, capital 30,000.00

FF, drawings (2,000.00)

Total Assets 165,000.00 Total Liabilities and Capital 165,000.00

The partnership net income for the year amounted to 30,000. On January 1, 2020, FF has decided
to retire from the partnership and by mutual agreement among partners; the following have been
arrived at:

a. Inventories amounting to 5,000 is considered obsolete and must be written off

b. Furniture and fixtures should be adjusted to their current value of 65,000
c. Patents are considered worthless and must be written off immediately before the
retirement of FF

It was agreed that the partners will pay FF for his interest in the partnership inclusive of loan
balance

1. The interest of FF immediately before his retirement amounted to:

a. 37,000 c. 35,000
b. 36,000 d. 24,000

2. FF retires by receiving 36,000 cash payment at book value, the capital balances of DD and
EE after the retirement of FF:
a. DD, 82,500; EE, 67,500 c. DD, 67,500; EE, 58,500
b. DD, 85,000; EE, 69,000 d. DD, 57,500’ EE, 52,500

3. FF retires by receiving 38,000 cash (payment at more than book value), using bonus
method, the capital balances of DD and EE after the retirement of FF: a. DD, 81,250; EE,
66,750 c. DD, 81,875; EE, 67,125
b. DD, 83,750; EE, 68,250 d. DD, 82,500; EE, 67,500

4. FF retires by receiving 38,000 cash (payment at more than book value), using total
implied goodwill method, the capital balances of DD and EE after the retirement of FF:
a. DD, 87,500; EE, 70,500 c. DD, 81,875; EE, 67,125
b. DD, 83,750; EE, 68,250 d. DD, 82,500; EE, 67,500

Problem 6

The capital accounts of the Sarah and Opel partnership on January 1, 2018 were:
Sarah, Capital (75% profit percentage) P 140,000

Opel, Capital (25% profit percentge) 60,000

Total Capital P 200,000

On October 1, Tina was admitted for a 40% interest in the partnership when she purchased 40% of
each existing partner’s capital for P100,000, paid directly to Sarah and Opel. The partnership’s net
income for the year is P82,500 and 2/3 of it was earned in the last quarter of the year.

1. What are the capital balances of Sarah, Opel and Tina after Tina’s admission to the partnership?
A. P105,000; P45,000; P100,000
B. P135,875; P55,313; P127,500
C. P96,375; P40,125; P91,000
D. P112,500; P50,000; P87,500
2. How much will Sarah receive from the above transaction?
A. P71,000 C. P86,250
B. P92,500 D. P118,750
3. Assume Tina is admitted by investing the P100,000 into the partnership for a 40% interest, how
much is the ending capital balance of Opel after admission and the bonus (given)/received
to/from Tina?

A. P68,750; (P6,250) C. P89,063; P5,313

B. P79,063; (P13,125) Solution: D. P59,125;(P7,750)

Problem 7

The balance sheet at December 31, 2018, for the Beth, Daisy and Maya partnership is summarized
as follows:
Daisy is retiring from the partnership. The partners agreed that the partnership assets,
Assets P 1,000,000 Liabilities P 250,000
Loan to Daisy 125,000 Beth Capital (50%) 375,000

Daisy Capital (40%) 375,000

Maya Capital (10%) 125,000

Total P 1,125,000 Total P 1,1125,000

excluding Daisy’s loan, should be adjusted to their fair market value of P1,250,000 and that Daisy
should receive P380,000 for her capital balance net of the P125,000 loan.

How much is the capital balance of Beth and Maya immediately after Daisy’s retirement.

A. P475,000; P145,000 C. P481,250; P146,250

B. P500,000; P150,000 D. P385,416; P127,084

Problem 8
On January 2, 2018, Lexy and Ace dissolve their partnership and transfer all assets and liabilities to
a newly formed corporation. At the date of incorporation, the fair value of the net assets was
P22,500 more than the carrying amount on the partnership’s books. Of which P12,500 was assigned
to tangible assets and P10,000 was assigned to patent. Lexy and Ace were each issued 5,000 shares
of the corporations P12.50 par common
stock.
5. Immediately following incorporation, additional paid-in capital in excess of par should be
credited for
A. P160,000 C. P25,000
B. P47,500 D. P137,500
Problem 9

On June 30, 2017, the balance sheet for the partnership of D, E and F, together with their
respective profit and loss ratios, is summarized as follows:
Assets, at cost P 375,000 D, Loan P 18,750

D, Capital (20%) 87,500

E, Capital (20%) 81,250

F, Capital (60%) 187,500

Total P 375,000

D has decided to retire from the partnership, and by mutual agreement the assets are to be
adjusted to their fair value of P450,000 at June 30, 2018. It is agreed that the partnership will pay
D P127,500 cash for his partnership interest exclusive of his loan, which is to be repaid in full.

1. After D’s retirement, what are the capital account balances of partners E and F,
respectively?

A. P81,250 and P187,500 C. P121,250 and P307,500

B. P90,000 and P213,750 D. P96,250 and P232,500

Problem 10

Partners Boba and Tess, who share profits and losses equally, have decided to incorporate the
partnership at December 31, 2018. The partnership net assets after the following adjustments will
be contributed in exchange for share of stocks from the corporation.

I. Provision of allowance for doubtful accounts, P6,250.

II. Adjustment of overstated equipment by P2,500
III. Adjustment of understated inventory by P13,750 and IV. Recognition of additional
depreciation of P5,000.

The corporation’s ordinary share is to have a par value of P250 each and the partners are to be
issued corresponding shares equivalent to 80% of their adjusted capital balances.
The partnership balance sheet at December 31, 2018 follows:

Cash P 112,500 Liabilities P 107,500

Accounts Receivable 62,500 Accounts Payable 5,000
Inventory 87,500 Boba, Capital 106,250
Equipment 50,000 Tess, Capital 93,750
Total P 312,500 Total P 312,500

1. Determine the total credit to APIC upon incorporation of partnership

A. P61,875 C. P40,000
B. P144,375 D. P140,000

2. The number of ordinary shares issued to Partner Tess is

A. 210 C. 238
B. 300 D. 217
Problem 11

Capital balances and profit sharing percentages for the partnership of Aaron, Nimrod, and Elijah on
January 1,2018 are as follows:

Aaron (36%) P140,000

Nimrod (24%) 100,000
Elijah (40%) 160,000
On January 2,2018 the partners agree to admit Ruth in the partnership for a 25% interest in capital
and earnings for her investment in the partnership of P120,000. Partnership are not to be revalued.

a. The capital balance of Aaron, Nimrod, Elijah and Ruth, immediately after the admission
of Ruth would be:
b. What will be new profit and loss ratio for Aaron, Nimrod, Elijah, and Ruth, if old partners
will share profits using the old ratio?

Problem 12 (

The balance sheet of Dylan and Samuel Partnership at December 31, 218, appears below:

Assets: Liabilities:
Cash P15,000 Accounts Payable P35,000
AR (net) 45,000 Notes Payable 25,000
Inventories 75,000 Accrued Liabilities 40,000
PPE (net) 225,000 Mortgage Payable 110,000
Dylan, Capital 60,000
Samuel. Capital 90,000
P360,000 P360,000
Determine the capital balances of partners immediately after the admission of Sebastian
under the ff. independent situations:
a. Sebastian acquired 25% interest in the partnership capital directly from Dylan and Samuel for
P50,000. Sebastian paid P18,750 directly from Dylan and P31,250 directly to Samuel. Total Assets
of the partnership after the admission of Sebastian were P360,000. How much must be the capital
balance of Dylan immediately after the admission of Sebastian.
b. Assume the same facts as in a except that total assets of the partnership were P410,000 after the
admission of Sebastian. At January 1,2019, inventories had a fair value of P85,000, while PPE (net)
had a fair value of P265,000. Both Dylan and Samuel decided to revalue the partnership’s assets
before the admission of Sebastian. Determine the capital balance of Samuel immediately after the
admission of Sebastian
c. Sebastian acquired a 25% interest in capital by investing P50,000 of cash into the partnership.
Total capital of the Dylan-Samuel-Sebastian Partnership on January 1,2019, amounted to
P200,000. Determine the capital balance of Sebastian immediately after his admission
d. Sebastian acquired 25% interest in capital by investing P80,000 of cash into the partnership. Total
capital of the Dylan-Samuel-Sebastian Partnership after Sebastian’s admission amounted to
P320,000. The fair value of the inventories was P85,000 and the fair value of the PPE (net) was
P305,000 on January 1,2019. Determine the capital balance of Dylan, Samuel and Sebastian
immediately after Sebastian’s admission.

Problem 13

1. A, B and C have capital balances of P112,000, P130,000 and P58,000, respectively and share
profits in the ratio 3:2:1. D invest cash in the partnership for a ¼ interest.
a. D receives a ¼ interest in the assets of the partnership, which includes credit for
25,000 of goodwill that is recognized upon admission. How much cash D invest?
b. D receives a ¼ interest in the assets of the partnership and B is credited with P15,000
of the bonus from D, how much cash D invest?
Problem 14

L, M and M are partners sharing profits in the ratio of 3:2:1, respectively. Capital accounts are
P500,000. P300,000 and P200,000 on December 31,2018, when N decides to withdraw. It is agreed
to pay P300,000 for N’s interest. Profits after the withdrawal of N are to be shared equally.

Questions:
a. Using the bonus approach, how much are the capital balances of L and M after N’s
withdrawal?
b. Using the goodwill approach, how much are the capital balances of L and M after N’s
withdrawal?

Problem 15

O, P and Q share profits in the ratio of 5:3:2, Q is permitted to withdraw from the firm on
December 31, 2018. Profits after withdrawal of Q are to be shared 3:2. The partnership balance
sheet on this date is as follows:
Receivable from Q P10,000 Liabilities P80,000
Goodwill 80,000 Payable to P 30,000
Other Assets 190,000 O, capital 70,000
P, capital 60,000
Q, capital 40,000
280,000 280,000
a. Assuming that Q is paid P44,000 in full settlement of the capital interest and P10,000
claim balance, using the bonus method of recording the withdrawal of Q, how much
are the capital balances of O and P after Q’s withdrawal?
b. Using the data in question A, using the goodwill method of recording the withdrawal
of Q, how much are the capital balances of O and P after Q’s withdrawal?

Partnership Liquidation

Problem 1 (ReSA)

On December 31, 2019, the accounting record of MM, NN, OO Partnership (a general partnership)
included the following ledger account balances:

(Dr.) Cr.

MM, drawing (15,000.00)

OO, drawing (5,625.00)
NN, loan 18,750.00
MM, capital 76,875.00
NN, capital 62,812.50
OO, capital 67,500.00

Total assets of the partnership amounted to P299,062.50 including P32,812.50 cash and partnership
liabilities totalled, P93,750. The partnership was liquidated on December 31, 2019 and OO
received P52,031.25 cash pursuant to the liquidation. MM, NN and OO shared net income and losses
in a 5:3:2 ratio, respectively.

1. The loss on realization

a. 9,843.75 c. 49,218.75
b. 15,468.75 d. 77,343.50
2. The amount realized from sale of non-cash assets?
a. 160,781.25 c. 217,031.25
b. 188,906.25 d. 266,250.00
3. The cash balance after payment of liabilities?
a. 156,093.75 c. 221,718.75
b. 193,593.75 c. 249,843.75

Problem 2 (ReSA)

Fleming, Durano and Mart are partners in a wholesale business. On January 1, 2019 the total
capital was P30,00 and drawings presented as follows:

Capitals Drawings

Fleming 6,250.00 3,750.00

Durano 5,000.00 2,500.00
Mart 18,750.00 1,250.00

Partners agree that profit and loss ratio are shared equally. Because of the failure of some debtors
to pay their outstanding accounts, the partnership loses heavily and is compelled to liquidate. After
exhausting the partnership assets, including those arising from an operating profit of P4,500 in
2019, they still owe P5,250 to creditors on December 31, 2019. Fleming has no personal but the
others are well off.

1. The partnership liquidation loss:

a. None c. 27,750
b. 10,000 d. 32,250
2. The amount to be received by Mart as a result of the liquidation:
a. 818.75 c. 7,125
b. 4,875 d. 9,750

Problem 3 (ReSA)

Following is the balance sheet of DD, EE and FF partnership (a general partnership) on June 4, 2019
immediately prior to its liquidation:
Assets Liabilities and Capital

Cash 6,000.00 Liabilities 20,000.00

Other Asset 94,000.00 EE, loan 4,000.00
DD, capital 27,000.00

EE, capital 39,000.00

FF, capital 10,000.00

Total
100,000.00 100,000.00

The partners shared net income and losses as follows: DD, 40%; EE, 40% and FF, 20%. On June 4,
2019, the other cash were realized at P30,700 and P20,500 had to be paid to liquidate the
liabilities because of an unrecorded trade accounts payable of P500. DD and EE were solvent, but
FF’s personal liabilities exceeded personal assets by P5,000. How much would each partner
receive?

a. DD, 1,680; EE, 17,680; FF, 0

b. DD, 1,480; EE, 17,480; FF, 0
c. DD, 100; EE, 12,100; FF, 0
d. DD, 100; EE, 16,100; FF, 0

Problem 4 (ReSA)

When Ray and Conniff, general partners of the Ray Conniff partnership who shared net income and
losses in a 4:6 ratio were incapacitated in an accident, a liquidator was appointed to raise up the
partnership. The partnership’s balance sheet showed the
following:
Assets Liabilities and Capital

Cash 17,500.00 Liabilities 10,000.00

Other Asset 50,000.00 Ray, capital 35,500.00
Goodwill 5,000.00 Conniff, capital 27,000.00
Total 72,500.00
72,500.00

Liquidation expenses paid P2,500 for advertising, rent, travel, etc. and in the process of liquidating
the partnership an overlooked bill for landscaping of P1,000 is discovered and in addition, partners
agree to keep a P1,500 contingent fun. Determine the amount of cash that should be paid to each
partner:

a. Ray, 11,500; Conniff, 0 c. Ray, 7500; Conniff, 0

b. Ray, 2,500; Conniff, 0 d. Ray, 5,000; Conniff, 0

Problem 5 (ReSA)

The partnership of JJ, KK, LL and MM is preparing to liquidate. Profit and loss sharing ratios are
shown is the summarized balance sheet at December 31, 2019 as follows:
Assets Liabilities and Capital
Cash 100,000.00 Other Liabilities 50,000.00
Inventories 100,000.00 JJ, loan 50,000.00
Loan to KK 10,000.00 JJ, capital (40%) 100,000.00
Other Assets 255,000.00 KK, capital (20%) 160,000.00
LL, capital (20%) 50,000.00

MM, capital (20%) 55,000.00

Total Total 465,000.00

465,000.00

During January 2020, the inventories are sold for P42,500, the others liabilities are paid and
P25,000 is set-aside for contingencies

Compute the total cash payment to partners:

Payment to
Partners

a. 97,500.00
b. 102,500.00
c. 72,500.00
d. 67,500.00

Problem 6 (PRTC)

Partners Edong, Sally and Zarah decided to liquidate their partnership on November 30, 2017.
Their capital balances and profit and loss are as follows:
Capitals P&L ratio
Edong P 600,000 40%
Sally 784,000 40%

Zarah 240,000 20%

The net income from January 1, 2017 to November 30, 2017 is P656,000. On November 30, 2017,
the cash balance is P520,000, and that of liabilities is P1,160,000. Edong is to receive P706,560 in
the settlement of his interest.

1. Calculate: (1) The loss on realization, and (2) the amount to be realized from the sale of non-
cash assets?

A. (1) P 389,600 (2) P2,530,400

B. (1) P 248,000 (2) P5,100,000
C. (1) P 620,000 (2) P3,860,000
D. (1) P 522,000 (2) P3,860,000

Problem 7 (PRTC)

The partnership of Mikee and Rosa is in the process of liquidation. On January 1, 2017, the ledger
shows account balances as follows:
Cash P 8,000 Accounts Payable P 12,000
Accounts Receivable 20,000 Mikee, Capital 32,000
Lumber Inventory 32,000 Rosa, Capital 16,000
On January 10, 2017, the lumber inventory is sold for P20,000, and during January, accounts
receivable of P16,800 is collected. No further collections on the receivables are expected and the
partners have incurred P3,200 of liquidation expenses. Profits are shared 60% for Mikee and 40% for
Rosa.
2. How much cash will partner Mikee and Rosa receive upon liquidation?

A. P22,800; P9,920 C. P20,960; P8,640

B. P37,600; P18,400 D. P20,500; P20,500

Problem 8 (PRTC)

The partnership ABC is currently liquidating and on February 15, 2017, their balances in capital and
their profit and loss ratios are shown below:
Apple, Capital (P&L 40%) P 22,000
Bryan, Capital (P&L 20%) 14,000
Cecile, Capital (P&L 40%) -12,000
Assume non-cash assets have been all disposed and Cecile has promised to pay his deficiency in a
week’s time.
3. Calculate the amount to be received by one of the partners if cash is paid immediately on
February 15, 2017.

A. Apple, P22,000 C. Bryan, P10,000

B. Bryan, P12,000 D. Apple, P12,000

Problem 9 (PRTC)

The balance sheet for Chester, Joana and John partnership, who share profits and losses in the
ratio of 50%, 25% and 25%, respectively, shows the following balances just before liquidation.

Cash P 24,000
Other Assets 119,000
Liabilities 40,000
Chester, Capital 44,000
Joana, Capital 31,000
28,000
John, Capital
On the first month of liquidation, certain assets are sold for P64,000. Liquidation expense of
P2,000 are paid, and additional liquidation expenses are anticipated. Liabilities are paid amounting
to P10,800 and sufficient cash is retained to insure the payment to creditors before making
payments to partners. On the first payment to the partners, Chester receives P12,500

4. Determine the amount of cash withheld for anticipated liquidation expenses.

A. P35,200 C. P33,200
B. P29,200 D. P6,000

Problem 10 (PRTC)

A condensed balance sheet with profit sharing percentages for the E, F and G partnership on
January 1, 2017, shows the following:

Cash P 100,000 Liabilities P 80,000

Other Assets 500,000 E, Capital (40%) 100,000
F, Capital (40%) 250,000
G, Capital (20%) 170,000
Total P 600,000 Total P 600,000

On January 2, 2017, the partners decided to liquidate the business, and during January they sell
assets with a book value of P300,000 for P170,000.

5. How much cash will the partners receive if all available cash, except for a P10,000 contingency
fund, is distributed immediately after the sale

A. All partners will receive P60,000

B. Partners F and G will both receive P90,000
C. Partner F will receive P96,667 and Partner G will receive P93,333
D. Partner F will receive P190,000

Problem 11 (CRC-ACE)

A, B, and C are partners sharing profits in the ratio of 5:3:2, respectively. A balance sheet
prepared just prior to partnership liquidation shows the following:

A B C
Capital Balances P 122,000 P 72,000 P47,000
Loan Balances P 43,000 P 48,000 P 6,000

Assets are sold and cash is distributed to partners in monthly instalments during the course of
liquidation as follows:
January P 20,000
February 50,000
March 80,000
April (final distribution) 20,000

Required:
a. Prepare a program to show how cash is to be distributed during the entire course of
liquidation.
b. Using the program developed above, prepare a schedule summarizing the payments to be
made to partners at the end of each month.

Problem 12 (CRC-ACE)

Elizabeth, Diana, Anthony, and Scarlett were partners who decided to liquidate the affairs of the
partnership. Prior to dissolution, the condensed balance sheet together with the profit and loss
sharing ratio was derived as follows:
P P
Cash 100,000 Liabilities 750,000
Other Assets 1,800,000 Diana, Loan 60,000
Scarlett, Loan 50,000
Elizabeth,Capital (30%) 420,000
Diana, Capital (30%) 315,000
Anthony, Capital (20%) 205,000
Scarlett, Capital (20%) 100,000

P
1,900,000 P 1,900,000

The other assets were sold for P 1,200,000. Payments were made to creditors and final
distributions of cash were made to partners.

a. The partner who got paid the most was:

b. The cash received by Scarlett will be applied:

Problem 14 (CRC-ACE)

The balance sheet of J, K, and L Partnership shows the following information as of December 31,
2018:

Cash P 2,000 Liabilities P 5,000

Other
Assets 28,000 J, Loan 2,500
J, Capital 12,500

K, Capital 7,000

L, Capital 3,000

P 30,000 P 30,000

Profit and loss ratio is 3:2:1, respectively, for J, K, and L. Other assets were realized as
follows:

Date Cash Received Book Value

January, 2018 P 8,000 P 9,000

February, 2018 3,500 7,700

March, 2018 12,500 11,300

Cash is distributed as assets are realized.

a. How much is the total loss to J?

b. How much is the total cash received by K?
c. How much cash does L receive in January?

Problem 15 (CRC-ACE)

Balance sheet data for the firm of W, X, and Y as of January 1, 2018, follow:
Assets 1,225,000
Assets Liabilities P 675,000
W, Capital 200,000

X, Capital 200,000

Y, Capital 200,000

P1,225,000 P1,225,000

Partners share profits equally after allowance of a salary to Y, the managing partner, of P7,500
monthly. As a result of operation losses sustained at the beginning of 2018, W

advanced P 150,000 to the firm on April 1; it was agreed that he would be allowed interest at 6%.
With continued losses, the members decided to liquidate. Y agreed to take over partnership
equipment in part of settlement of his interest, the transfer being made at an agreed value of P
40,000. On November1, P 200,000 cash was available for distribution to partners after the sale of
remaining assets and payment of partnership obligations to outsiders. Y had withdrawn his salary
for January and February but had not received his salary for the period of March 1 to November 1;
no other cash payments had been made to partners. Available cash was distributed on November 1
and the firm was declared dissolved.

How much cash should W received in the distribution of P 200,000 cash available?