When JUSTIN and BIEBER, partners who share earnings 60:40, were severely injured in an accident, a liquidator was appointed to wind up their business. The accounts showed cash, P90,000; other assets, P235,000; liabilities, P45,000; Justin's capital, Pl26,000; and Bieber's capital, PI54,000. The expenses of liquidating the business (advertising, rent, travel, etc.) are estimated at P25,000. How much cash can be distributed safely at this point?
When JUSTIN and BIEBER, partners who share earnings 60:40, were severely injured in an accident, a liquidator was appointed to wind up their business. The accounts showed cash, P90,000; other assets, P235,000; liabilities, P45,000; Justin's capital, Pl26,000; and Bieber's capital, PI54,000. The expenses of liquidating the business (advertising, rent, travel, etc.) are estimated at P25,000. How much cash can be distributed safely at this point?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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When JUSTIN and BIEBER, partners who share earnings 60:40, were severely injured in an accident, a liquidator was appointed to wind up their business. The accounts showed cash, P90,000; other assets, P235,000; liabilities, P45,000; Justin's capital, Pl26,000; and Bieber's capital, PI54,000. The expenses of liquidating the business (advertising, rent, travel, etc.) are estimated at P25,000. How much cash can be distributed safely at this point?
Transcribed Image Text:7. When JUSTIN and BIEBER, partners who share earnings 60:4O, were
5 points
severely injured in an accident, a liquidator was appointed to wind up their
business. The accounts showed cash, P90,000; other assets, P235,000;
liabilities, P45,000; Justin's capital, PI26,000; and Bieber's capital,
PI54,000. The expenses of liquidating the business (advertising, rent,
travel, etc.) are estimated at P25,000. How much cash can be distributed
safely at this point? *
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12/20/2020
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