King, Queen and Prince are partners sharing profit and loss in the ratio of 1:1:2 respectively.  Their capital balances are P500,000,  P300,000 and P200,000 respectively.  Liabilities amounted to P200,000.  There is also a loan payable to Prince, P20,000. _______ If the non-cash assets were sold at a gain of P150,000. How much is the cash proceeds? a.P1,100,000                                                   c.  P1,400,000 b.P800,000                                                      d.  P1,050,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

King, Queen and Prince are partners sharing profit and loss in the ratio of 1:1:2 respectively.  Their capital balances are P500,000,  P300,000 and P200,000 respectively.  Liabilities amounted to P200,000.  There is also a loan payable to Prince, P20,000.

_______ If the non-cash assets were sold at a gain of P150,000. How much is the cash proceeds?

a.P1,100,000                                                   c.  P1,400,000

b.P800,000                                                      d.  P1,050,000

King, Queen and Prince are partners sharing profit and loss in the ratio of 1:1:2
respectively. Their capital balances are P500,000, P300,000 and P200,000
respectively. Liabilities amounted to P200,000. There is also a loan payable to Prince,
P20,000.
Ifthe non-cash assets were sold at a gain of P150,000. How much is the cash
proceeds?
a. P1,100.000
b. P800,000
c. P1,400,000
d. P1,050,000
Transcribed Image Text:King, Queen and Prince are partners sharing profit and loss in the ratio of 1:1:2 respectively. Their capital balances are P500,000, P300,000 and P200,000 respectively. Liabilities amounted to P200,000. There is also a loan payable to Prince, P20,000. Ifthe non-cash assets were sold at a gain of P150,000. How much is the cash proceeds? a. P1,100.000 b. P800,000 c. P1,400,000 d. P1,050,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education