Partners Percy, May and Anne have decided to liquidate their partnerships. The partnerships Statement of Financial Position reveals the following:ASSETS LIABILITIES AND CAPITAL CashP250,000LiabilitiesP300,000Noncash Assets2,500,000Percy, Capital (40%)900,000 May, Capital (40%)1,200,000 Anne, Capital (20%)350,000Total AssetsP2,750,000Total Liabilities & CapitalP2,750,000All partners are personally solvent. Anne received P490,000 in cash in full settlement for her share in the partnership. What was the selling price for the other assets?

Excess Balance received by A=A received in cash-A's share=P 490,000-P350,000=P140,000

Answered: Partners Percy, May and Anne have…

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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Partners Percy, May and Anne have decided to liquidate their partnerships. The partnerships Statement of Financial Position reveals the following:

ASSETS		LIABILITIES AND CAPITAL
Cash	P250,000	Liabilities	P300,000
Noncash Assets	2,500,000	Percy, Capital (40%)	900,000
		May, Capital (40%)	1,200,000
		Anne, Capital (20%)	350,000
Total Assets	P2,750,000	Total Liabilities & Capital	P2,750,000

All partners are personally solvent. Anne received P490,000 in cash in full settlement for her share in the partnership. What was the selling price for the other assets?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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