On January 1, 20x1, A and B decided to liquidate their partnership. As of this date, their capital balances were P400,000 and P800,000, respectively. The partners share profits and losses on a 60:40 ratio. Before liquidation, the partnership had P80,000 cash and P120,000 liabilities. The partnership incurred loss of P480,000 on the sale of non-cash assets. A is solvent but B is insolvent. How much was the net proceeds from the sale of non-cash assets?

On January 1, 20x1, A and B decided to liquidate their partnership. As of this date, their capital balances were P400,000 and P800,000, respectively. The partners share profits and losses on a 60:40 ratio. Before liquidation, the partnership had P80,000 cash and P120,000 liabilities. The partnership incurred loss of P480,000 on the sale of non-cash assets. A is solvent but B is insolvent. How much was the net proceeds from the sale of non-cash assets?

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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