What is the correct answer? 39. Peter and John, who share profits and losses equally, decided toliquidate their partnership when their net assets amounted to P260,000,and capital balances of P170,000 and P90.000, respectively. If thenoncash assets were sold for amount equal to its book value, whatamount of cash should Peter and John recelved?*a. Peter, P130,000 John P130,000b. Peter, P170,000 John P90,000c Peter, P180,000 John P20,000d. Peter, P195,000 John P65,000

Correct Answer :- B Peter P170,000. And john P90000

Answered: profits and losses equally

Business

Accounting

profits and losses equally

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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Question

What is the correct answer?

39. Peter and John, who share profits and losses equally, decided to
liquidate their partnership when their net assets amounted to P260,000,
and capital balances of P170,000 and P90.000, respectively. If the
noncash assets were sold for amount equal to its book value, what
amount of cash should Peter and John recelved?*
a. Peter, P130,000 John P130,000
b. Peter, P170,000 John P90,000
c Peter, P180,000 John P20,000
d. Peter, P195,000 John P65,000

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