Lady and Gaga are partners sharing profits and losses in the ratio of 7:3, respectively. On October 1, 2021, they decided to liquidate the business when the account balances are Debit Credit Cash 50,000 Non-cash Assets 150,000 Liabilities 50,000 Lady, Capital 90,000 Gaga, Capital 60,000 During the same month, the non-cash assets were sold for 100,000. After paying the liabilities, Lady and Gaga, in final settlement of their interest, would receive cash of a. 105,000 and 45,000, respectively b. 90,000 and 60,000, respectively c. 55,000 and 45,000, respectively d. 70,000 and 30,000, respectively
Lady and Gaga are partners sharing profits and losses in the ratio of 7:3, respectively. On October 1, 2021, they decided to liquidate the business when the account balances are Debit Credit Cash 50,000 Non-cash Assets 150,000 Liabilities 50,000 Lady, Capital 90,000 Gaga, Capital 60,000 During the same month, the non-cash assets were sold for 100,000. After paying the liabilities, Lady and Gaga, in final settlement of their interest, would receive cash of a. 105,000 and 45,000, respectively b. 90,000 and 60,000, respectively c. 55,000 and 45,000, respectively d. 70,000 and 30,000, respectively
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lady and Gaga are partners sharing
| Debit | Credit | |
| Cash | 50,000 | |
| Non-cash Assets | 150,000 | |
| Liabilities | 50,000 | |
| Lady, Capital | 90,000 | |
| Gaga, Capital | 60,000 |
During the same month, the non-cash assets were sold for 100,000.
After paying the liabilities, Lady and Gaga, in final settlement of their interest, would receive cash of
a. 105,000 and 45,000, respectively
b. 90,000 and 60,000, respectively
c. 55,000 and 45,000, respectively
d. 70,000 and 30,000, respectively
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