The statement of financial position of the firm of Wanda, Wendy and Wilma just before liquidation shows the following: Assets P240,000 Liabilities P100,000 Wanda, Loan Wanda, Capital Wendy, Capital...

1. How much cash is to be distributed to the partners? 2. How much is to be distributed to the partners if they share profits at a ratio of 3:6:1 respectively?


Extracted text: The statement of financial position of the firm of Wanda, Wendy and Wilma just before liquidation shows the following: Assets P240,000 Liabilities P100,000 Wanda, Loan Wanda, Capital Wendy, Capital Wilma, Capital 20,000 44,000 60,000 16,000 P240,000 Total Wanda, Wendy and Wilma share profits 5: 3: 2 respectively. Certain assets worth P160,000 are sold at book value. Creditors are paid in full, partners are paid P40,000 and cash of P20,000 is withheld pending future developments.