When Conde and Dalmacio, partners who share earnings equally, were incapacitated in an airplane accident, a...

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When Conde and Dalmacio, partners who share earnings equally, were incapacitated in an airplane accident, a liquidator was appointed to wind up their business. The accounts showed cash, P70,000; other assets, P220,000; liabilities, P40,000; Conde's capital, P142,000 and Dalmacio's capital P180,000. Because of the highly specialized nature of the non-cash assets, the liquidator anticipated that considerable time would be required to dispose them. The expense o liquidating the business (advertising, rent, travel, etc.) are estimated at P20,000 Instructions: Determine the amount of cash that can be distributed safely to each partner at this point. When Conde and Dalmacio, partners who share earnings equally, were incapacitated in an airplane accident, a liquidator was appointed to wind up their business. The accounts showed cash, P70,000; other assets, P220,000; liabilities, P40,000; Conde's capital, P142,000 and Dalmacio's capital P180,000. Because of the highly specialized nature of the non-cash assets, the liquidator anticipated that considerable time would be required to dispose them. The expense o liquidating the business (advertising, rent, travel, etc.) are estimated at P20,000 Instructions: Determine the amount of cash that can be distributed safely to each partner at this point.

Answer rating: 100% (QA)

I Safe Cash Distribution Method means the distribution of cash according to the current value but ... View the full answer