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1. Partners Badecir 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.lf the non-cash assets are sold for P600,000, then Magallanes' capital account will * a. Decrease by P100,000 b. Decrease by P200,000 c. Decrease by P300,000 d. Increase by P150,000

1. Partners Badecir 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.lf the non-cash assets are sold for P600,000, then Magallanes' capital account will * a. Decrease by P100,000 b. Decrease by P200,000 c. Decrease by P300,000 d. Increase by P150,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Partners Badecir 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.lf the non-cash assets are sold for P600,000, then Magallanes' capital account will * a. Decrease by P100,000 b. Decrease by P200,000 c. Decrease by P300,000 d. Increase by P150,000
Transcribed Image Text:1. Partners Badecir 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.lf the non-cash assets are sold for P600,000, then Magallanes' capital account will * a. Decrease by P100,000 b. Decrease by P200,000 c. Decrease by P300,000 d. Increase by P150,000
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