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The pipes company at 31/12/2019 has cash $250,000, non-cash assets $750,000, liabilities $310,000, and the following capital balances: Samar $340,000 and Qamar $350,000. the Firm is liquidated, and $700,000 in cash is received for the non-cash assets, Samar & Qamar income ratios 65%and 35% respectively. The journal entry for payment of liabilities is: a. Debit Cash 310,000 and credit Liabilities 310,000 O b. Debit Liabilities 310,000 and credit Cash 310,000 O c. Debit Cash 250,000 and credit Liabilities 250,000 O d. Debit Liabilities 250,000 and credit Cash 250,000

The pipes company at 31/12/2019 has cash $250,000, non-cash assets $750,000, liabilities $310,000, and the following capital balances: Samar $340,000 and Qamar $350,000. the Firm is liquidated, and $700,000 in cash is received for the non-cash assets, Samar & Qamar income ratios 65%and 35% respectively. The journal entry for payment of liabilities is: a. Debit Cash 310,000 and credit Liabilities 310,000 O b. Debit Liabilities 310,000 and credit Cash 310,000 O c. Debit Cash 250,000 and credit Liabilities 250,000 O d. Debit Liabilities 250,000 and credit Cash 250,000

FINANCIAL ACCOUNTING
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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The pipes company at 31/12/2019 has cash $250,000, non-cash assets $750,000, liabilities $310,000, and the following capital balances: Samar $340,000 and Qamar $350,000. the Firm is liquidated, and $700,000 in cash is received for the non-cash assets, Samar & Qamar income ratios 65%and 35% respectively. The journal entry for payment of liabilities is: a. Debit Cash 310,000 and credit Liabilities 310,000 b. Debit Liabilities 310,000 and credit Cash 310,000 O c. Debit Cash 250,000 and credit Liabilities 250,000 O d. Debit Liabilities 250,000 and credit Cash 250,000
Transcribed Image Text:The pipes company at 31/12/2019 has cash $250,000, non-cash assets $750,000, liabilities $310,000, and the following capital balances: Samar $340,000 and Qamar $350,000. the Firm is liquidated, and $700,000 in cash is received for the non-cash assets, Samar & Qamar income ratios 65%and 35% respectively. The journal entry for payment of liabilities is: a. Debit Cash 310,000 and credit Liabilities 310,000 b. Debit Liabilities 310,000 and credit Cash 310,000 O c. Debit Cash 250,000 and credit Liabilities 250,000 O d. Debit Liabilities 250,000 and credit Cash 250,000
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