Partners Matero and Malaya each have a P200,000 capital balance and share profits and losses in a 3:2 ratio, respectively. Cash equals P100,000, non-cash assets equal P600,000, and liabilities equal P300,000. 1.If the non-cash assets are sold for P350,000, then Matero’s capital account will a. decrease by 105,000 b. decrease by 150,000 c. increase by 210,000 d. decrease by 210,000 2. If the non-cash assets are sold for P250,000, and each partner is personally insolvent, Malaya eventually will receive cash of a. 100,000 b. 0 c. 50,000 d. 60,000

Partners Matero and Malaya each have a P200,000 capital balance and share profits and losses in a 3:2 ratio, respectively. Cash equals P100,000, non-cash assets equal P600,000, and liabilities equal P300,000. 1.If the non-cash assets are sold for P350,000, then Matero’s capital account will a. decrease by 105,000 b. decrease by 150,000 c. increase by 210,000 d. decrease by 210,000 2. If the non-cash assets are sold for P250,000, and each partner is personally insolvent, Malaya eventually will receive cash of a. 100,000 b. 0 c. 50,000 d. 60,000

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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