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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 received? a. Peter, P130,000 John P130,000 b. Peter, P170,000 John P90,000 c. Peter, P180,000 John P80,000 d. Peter, P195,000 John P65,000

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 received? a. Peter, P130,000 John P130,000 b. Peter, P170,000 John P90,000 c. Peter, P180,000 John P80,000 d. Peter, P195,000 John P65,000

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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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 received? a. Peter, P130,000 John P130,000 b. Peter, P170,000 John P90,000 c. Peter, P180,000 John P80,000 d. Peter, P195,000 John P65,000
Transcribed Image Text: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 received? a. Peter, P130,000 John P130,000 b. Peter, P170,000 John P90,000 c. Peter, P180,000 John P80,000 d. Peter, P195,000 John P65,000
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