Orange and Lemon share profits and losses equally. They decided to liquidate their partnership when their net assets amounted to P 260,000. Capital balances were P 170,000 and P 90,000, respectively. If the non-cash assets were sold for an amount equal to book value, what amount of cash should Orange and Lemon respectively received?
Orange and Lemon share profits and losses equally. They decided to liquidate their partnership when their net assets amounted to P 260,000. Capital balances were P 170,000 and P 90,000, respectively. If the non-cash assets were sold for an amount equal to book value, what amount of cash should Orange and Lemon respectively received?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Orange and Lemon share
when their net assets amounted to P 260,000. Capital balances were P 170,000 and P 90,000,
respectively. If the non-cash assets were sold for an amount equal to book value, what amount of
cash should Orange and Lemon respectively received?
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