A and B agreed to dissolve their relationship on January 1, 20x1. Their capital balances were P400, 000 and P800, 000, respectively, as of this date. Profits and losses are split 60:40 between the partners. The partnership had P80, 000 in cash and P120, 000 in liabilities prior to dissolution. The partnership suffered a P480, 000 loss on the disposal of non-cash assets. A is a solvent, while B is not. How much money did you make from the selling of non-cash assets?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A and B agreed to dissolve their relationship on
January 1, 20x1. Their capital balances were P400,
000 and P800, 000, respectively, as of this date.
Profits and losses are split 60:40 between the
partners. The partnership had P80, 000 in cash and
P120, 000 in liabilities prior to dissolution. The
partnership suffered a P480, 000 loss on the
disposal of non-cash assets. A is a solvent, while B is
not.
How much money did you make from the selling of
non-cash assets?
Transcribed Image Text:A and B agreed to dissolve their relationship on January 1, 20x1. Their capital balances were P400, 000 and P800, 000, respectively, as of this date. Profits and losses are split 60:40 between the partners. The partnership had P80, 000 in cash and P120, 000 in liabilities prior to dissolution. The partnership suffered a P480, 000 loss on the disposal of non-cash assets. A is a solvent, while B is not. How much money did you make from the selling of non-cash assets?
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