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?

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

Section: Chapter Questions

Problem 1Q

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