8 A, B, C and D are partners, sharing earnings in the ratio of 3:4:6:8. The balance of their capital accounts on December 21, 2020 are as follows: A – P 25,000; B- P625,000; C – P625,000 and D – P225,000. The partners decided to liquidate, and they accordingly convert the non-cash assets into P580,000 of cash. After paying the liabilities amounting to P75,000, they have P555,000 cash available for payment to partners. Assume that a debit balance in any of partner’s capital account is uncollectible. The book value of non-cash assets amounted to: _______
8 A, B, C and D are partners, sharing earnings in the ratio of 3:4:6:8. The balance of their capital accounts on December 21, 2020 are as follows: A – P 25,000; B- P625,000; C – P625,000 and D – P225,000. The partners decided to liquidate, and they accordingly convert the non-cash assets into P580,000 of cash. After paying the liabilities amounting to P75,000, they have P555,000 cash available for payment to partners. Assume that a debit balance in any of partner’s capital account is uncollectible. The book value of non-cash assets amounted to: _______
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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8
A, B, C and D are partners, sharing earnings in the ratio of 3:4:6:8. The balance of their capital accounts on December 21, 2020 are as follows: A – P 25,000; B- P625,000; C – P625,000 and D – P225,000. The partners decided to liquidate, and they accordingly convert the non-cash assets into P580,000 of cash. After paying the liabilities amounting to P75,000, they have P555,000 cash available for payment to partners. Assume that a debit balance in any of partner’s capital account is uncollectible. The book value of non-cash assets amounted to: _______
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