When JUSTIN and BIEBER, partners who share earnings 60:40, were severely injured in an accident, a liquidator was appointed to wind up their business. The accounts showed cash, P90,000; other assets, P235,000; liabilities, P45,000; Justin's capital, Pl26,000; and Bieber's capital, PI54,000. The expenses of liquidating the business (advertising, rent, travel, etc.) are estimated at P25,000. How much cash can be distributed safely at this point?
When JUSTIN and BIEBER, partners who share earnings 60:40, were severely injured in an accident, a liquidator was appointed to wind up their business. The accounts showed cash, P90,000; other assets, P235,000; liabilities, P45,000; Justin's capital, Pl26,000; and Bieber's capital, PI54,000. The expenses of liquidating the business (advertising, rent, travel, etc.) are estimated at P25,000. How much cash can be distributed safely at this point?
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 19DQ
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When JUSTIN and BIEBER, partners who share earnings 60:40, were severely injured in an accident, a liquidator was appointed to wind up their business. The accounts showed cash, P90,000; other assets, P235,000; liabilities, P45,000; Justin's capital, Pl26,000; and Bieber's capital, PI54,000. The expenses of liquidating the business (advertising, rent, travel, etc.) are estimated at P25,000. How much cash can be distributed safely at this point?
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT