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32.Peter, James, and John are partners in a company that is being liquidated. They share profits and losses 70 percent, 20 percent, and 10 percent, respectively. When the liquidation begins they have capital account balances of P108,000, P62,000, and P56,000, respectively. The

32.Peter, James, and John are partners in a company that is being liquidated. They share profits and losses 70 percent, 20 percent, and 10 percent, respectively. When the liquidation begins they have capital account balances of P108,000, P62,000, and P56,000, respectively. The

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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32.Peter, James, and John are partners in a company that is being liquidated. They share profits and losses 70 percent, 20 percent, and 10 percent, respectively. When the liquidation begins they have capital account balances of P108,000, P62,000, and P56,000, respectively. The partnership just sold equipment with a historical cost and accumulated depreciation of P25,000 and P18,000, respectively for P10,000. What is the balance in James' capital account after the transaction is completed? P106,350 P108,000 P109,650 O P110,000
Transcribed Image Text:32.Peter, James, and John are partners in a company that is being liquidated. They share profits and losses 70 percent, 20 percent, and 10 percent, respectively. When the liquidation begins they have capital account balances of P108,000, P62,000, and P56,000, respectively. The partnership just sold equipment with a historical cost and accumulated depreciation of P25,000 and P18,000, respectively for P10,000. What is the balance in James' capital account after the transaction is completed? P106,350 P108,000 P109,650 O P110,000
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