2. After weeks of negotiating, Celine and Andrea formed a partnership by cantributing the net assets of their separate businesses.Immediately before the partnership is formed, Celine's business has an equity of P245,800, while Andrea showed a capitalbalance of P307,250 in her separate business. Accordingly, the assets of Celine is twice as much as the liabilities of Andrea,while Andrea's liabilities is 1/3 of her total assets. It was agreed that before any contributions are made, the total assets ofCeline should be increased by 10%, while the total liabilities of Andrea should be decreased by 20%. If Andrea'scontribution to the partnership is equal to her capital credit, what is the amount of extra/(excess) assets should CelineInvest/(withdraw) from the partnership so that their interests in the partnership are equal?A. P(122,900)B. P122,900C. P(61,450)D. P61,450

Given Details Celine equity=P245800 Andrea capital=P307250 Contribution by net assets of business…

Answered: 2. After weeks of negotiating. Celine…

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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