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AB and C have been partner for years and have been dividing the profits 2:33 with the following balances: DR: Cash 120,000 DR: AR 420,000 CR ADA 25000 DR: Inventory 580,000 DR: Vehicle 1000,000 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 absorb as additional loss using Theoretical Loss Approach method? O a. 71,250 Ob. 35,625 O c. 5,000 O d. 0

AB and C have been partner for years and have been dividing the profits 2:33 with the following balances: DR: Cash 120,000 DR: AR 420,000 CR ADA 25000 DR: Inventory 580,000 DR: Vehicle 1000,000 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 absorb as additional loss using Theoretical Loss Approach method? O a. 71,250 Ob. 35,625 O c. 5,000 O d. 0

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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AR 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 1000,000 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 absorb as additional loss using Theoretical Loss Approach mnethod? O a. 71,250 Ob. 35,625 O c. 5,000 O d. 0 32 arch ASUS VivoBook 立
Transcribed Image Text:AR 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 1000,000 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 absorb as additional loss using Theoretical Loss Approach mnethod? O a. 71,250 Ob. 35,625 O c. 5,000 O d. 0 32 arch ASUS VivoBook 立
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