Gerald, Julia and Bea are partners who decided to terminate their partnership due to misunderstanding. Total assets of the partnership is P480,000 including cash of P30,000. Capital balances of the partners

Gerald, Julia and Bea are partners who decided to terminate their partnership due to misunderstanding. Total assets of the partnership is P480,000 including cash of P30,000. Capital balances of the partners

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 amount must the remaining assets be sold in order for Julia to receive P197,500 after liquidation?

Gerald, Julia and Bea are partners who decided to terminate their partnership due to misunderstanding.
Total assets of the partnership is P480,000 including cash of P30,000. Capital balances of the partners
were as follows Gerald P150,000; Julia P175,000; Bea P67,500. Unpaid liabilities amounted to P87,500.
Assets with a book value of P175,000 were sold for P125,000 and the cash was distributed. The P/L
ratio is 5:3:2

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