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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![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?
dng
nemavongmi odi ai inemqolevsb bimonone lo bna a](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F53a0b755-e50a-4e75-b076-39096ed29a47%2F6372087e-730f-4b20-a4ef-60855d4a23df%2F7csqfv_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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?
dng
nemavongmi odi ai inemqolevsb bimonone lo bna a
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