Armani, Bulgari and Chloe decided to liquidate their partnership on August 31, 2020. They have been dividing profits and losses in the ratio of 4:3:3, respectively and their capital balances as of January 1, 2020 were as follows: Armani – P75,000; Bulgari – P 90,000; Chloe – P 30,000. The operations of the partnership for the period January 1, 2020 to August 31, 2020 resulted to net income of P 66,000. As of August 31, 2020, cash balance is P 60,000 and the liabilities are P 135,000. For Armani to receive P 60,000 in final settlement of his equity, how much be realized from the sale of the non cash assets?

Armani, Bulgari and Chloe decided to liquidate their partnership on August 31, 2020. They have been dividing profits and losses in the ratio of 4:3:3, respectively and their capital balances as of January 1, 2020 were as follows: Armani – P75,000; Bulgari – P 90,000; Chloe – P 30,000. The operations of the partnership for the period January 1, 2020 to August 31, 2020 resulted to net income of P 66,000. As of August 31, 2020, cash balance is P 60,000 and the liabilities are P 135,000. For Armani to receive P 60,000 in final settlement of his equity, how much be realized from the sale of the non cash assets?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 12DQ

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