Help me please and kindly provide complete solution for better understanding. Thanks Partners Baldecir and Magallanes each have a P300,000 capital balance and shareprofits and losses in a 3:1 ratio, respectively. Cash equals P100,000, non-cash assetsequal P1,000,000, and liabilities equal P500,000.1. If the non-cash assets are sold for P600,000, then Magallanes' capital account willdecrease by P100,000.decrease by P200,000.decrease by P300,000.d. increase by P150,000.a.b.С.

While forming a partnership firm, the agreeing partners decide upon a ratio in which they share all…

Answered: If the non-cash assets are sold for…

If the non-cash assets are sold for P600,000, then Magallanes' capital account will decrease by P100,000. b. decrease by P200,000. decrease by P300,000. d. increase by P150,000. a. С.

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter15: Harvesting The Business Venture Investment

Section: Chapter Questions

Problem 1eM

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Concept explainers

Functions of Financial Institutions

Financial institutions are businesses that are formed to deal with financial and monetary transactions. These organizations primarily accept deposits, advance loans, make investments, and provide foreign exchange services. Financial institutions include, but are not limited to, banks, insurance companies, trust companies, brokerage firms, and investment bankers. Because financial institutions play such an important role in the economy in terms of monetary transactions, regulating their activities has become a requirement for governmental authorities. As a result, the government creates a multitude of laws and regulations to oversee the activities of financial institutions.

Question

Help me please and kindly provide complete solution for better understanding. Thanks

Partners Baldecir and Magallanes each have a P300,000 capital balance and share
profits and losses in a 3:1 ratio, respectively. Cash equals P100,000, non-cash assets
equal P1,000,000, and liabilities equal P500,000.
1. If the non-cash assets are sold for P600,000, then Magallanes' capital account will
decrease by P100,000.
decrease by P200,000.
decrease by P300,000.
d. increase by P150,000.
a.
b.
С.

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