Marie, Len and Ann decided to dissolve their partnership on august 31, 2019. Profits and and losses are shared 4:3:3, respectively and their capital balances as of January 1, 2019 were as follows: Marie – P 75,000 Len - P 90,000 Ann - P 30,000 The operations of the partnership for the period January 1, 2019 to August 31, 2019 resulted to a profit of P 66,000. As of August 31, 2019, cash balance is P 60,000 and the liabilities are P 135,000. For Marie to receive P 60,000 in final settlement of her equity, how much should the non-cash assets be sold?
Marie, Len and Ann decided to dissolve their partnership on august 31, 2019. Profits and and losses are shared 4:3:3, respectively and their capital balances as of January 1, 2019 were as follows: Marie – P 75,000 Len - P 90,000 Ann - P 30,000 The operations of the partnership for the period January 1, 2019 to August 31, 2019 resulted to a profit of P 66,000. As of August 31, 2019, cash balance is P 60,000 and the liabilities are P 135,000. For Marie to receive P 60,000 in final settlement of her equity, how much should the non-cash assets be sold?
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 12DQ
Related questions
Question
Transcribed Image Text:Marie, Len and Ann decided to dissolve their partnership on august 31, 2019. Profits and and losses
are shared 4:3:3, respectively and their capital balances as of January 1, 2019 were as follows:
Marie – P 75,000
Len - P 90,000
Ann -P 30,000
The operations of the partnership for the period January 1, 2019 to August 31, 2019 resulted to a
profit of P 66,000. As of August 31, 2019, cash balance is P 60,000 and the liabilities are P 135,000.
For Marie to receive P 60,000 in final settlement of her equity, how much should the non-cash assets
be sold?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT