Problem # 9

Lump-Sum Liquidation
On Dec. 31,2016, the Hungria and Blanche Partnership had the
following assets, liabilities and partner's equity:
Assets
Capital
P1,000,000 =

Liabilities

Hungria,Capital

Blanche,

P250,000 +

P400,000 +

P350,000

When the partners agreed to liquidate the business, the assets were
sold for P800,000 and the liabilities were paid. Hungria and Blanche
share profits and losses in a ratio of 3:1, respectively. What is the final
cash distribution to each partner after liquidation?