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A, B, and C have been partners for years and have been dividing the profits 2:3:3 with the following balances: DR: Cash 120,000 DR: AR 420,000 CR: ADA 25,000 DR: Inventory 580,000 DR: Vehicle 1,000,000 CR: Accum. Dep'n 600,000 CR: Accounts Payable 595,000 CR: B Loan 100,000 CR: A, Capital 300,000 CR: B, Capital200,000 Cr: C, Capital 300,000 If at the first realization, P900,000 worth of net non-cash assets were sold for P480,000, how much should A receive using the Theoretical Loss Approach method? O a. 76,250 O b. 5,000 Oc. 35,625 O d. 71,250

A, B, and C have been partners for years and have been dividing the profits 2:3:3 with the following balances: DR: Cash 120,000 DR: AR 420,000 CR: ADA 25,000 DR: Inventory 580,000 DR: Vehicle 1,000,000 CR: Accum. Dep'n 600,000 CR: Accounts Payable 595,000 CR: B Loan 100,000 CR: A, Capital 300,000 CR: B, Capital200,000 Cr: C, Capital 300,000 If at the first realization, P900,000 worth of net non-cash assets were sold for P480,000, how much should A receive using the Theoretical Loss Approach method? O a. 76,250 O b. 5,000 Oc. 35,625 O d. 71,250

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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Hi please help me with this it is about dissolution with liquidation - Theoretical Loss Approach.

A, B, and C have been partners for years and have been dividing the profits 2:3:3 with the following balances: DR: Cash 120,000 DR: AR 420,000 CR: ADA 25,000 DR: Inventory 580,000 DR: Vehicle 1,000,000 CR: Accum. Dep'n 600,000 CR: Accounts Payable 595,000 CR: B Loan 100,000 CR: A, Capital 300,000 CR: B, Capital200,000 Cr: C, Capital 300,000 If at the first realization, P900,000 worth of net non-cash assets were sold for P480,000, how much should A receive using the Theoretical Loss Approach method? O a. 76,250 O b. 5,000 O c. 35,625 O d. 71,250 ch ACLIS ViORook 立
Transcribed Image Text:A, B, and C have been partners for years and have been dividing the profits 2:3:3 with the following balances: DR: Cash 120,000 DR: AR 420,000 CR: ADA 25,000 DR: Inventory 580,000 DR: Vehicle 1,000,000 CR: Accum. Dep'n 600,000 CR: Accounts Payable 595,000 CR: B Loan 100,000 CR: A, Capital 300,000 CR: B, Capital200,000 Cr: C, Capital 300,000 If at the first realization, P900,000 worth of net non-cash assets were sold for P480,000, how much should A receive using the Theoretical Loss Approach method? O a. 76,250 O b. 5,000 O c. 35,625 O d. 71,250 ch ACLIS ViORook 立
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