&and C have been partners for years and have been dividing the profits 2:3:3 with the following balances: Cash 120,000 RAR 420,000 R ADA 25,000 R: 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

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Hi please help me with this it is about dissolution with liquidation - Theoretical Loss Approach.

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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