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Accounting 12

Q, O, and P were partners with capital balances of P50,000, P60,000, and P20,000 respectively based on profit ratios of 40%, 30%, and 30%. From January to November 2012, the partnership earned P44,000 in net income but had P40,000 in cash and P90,000 in liabilities. For Q to receive P55,200 in settlement of his interest, the partnership must realize P65,200 from selling non-cash assets.

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Ma. Alexandra Teddy Buen
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28 views1 page

Accounting 12

Q, O, and P were partners with capital balances of P50,000, P60,000, and P20,000 respectively based on profit ratios of 40%, 30%, and 30%. From January to November 2012, the partnership earned P44,000 in net income but had P40,000 in cash and P90,000 in liabilities. For Q to receive P55,200 in settlement of his interest, the partnership must realize P65,200 from selling non-cash assets.

Uploaded by

Ma. Alexandra Teddy Buen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Problem 11:

Q, O, and P decided to dissolve the partnership on November 30, 2012. Their capital balance balances
and profit ratio on this date, follow:
Q (40%) – P 50,000
O (30%) – P 60,000
P (30%) – P 20,000

The net income from Jan. 1 – Nov. 30, 2012 is P 44,000. Also, on this date, cash and liabilities are P
40,000 and P 90,000, respectively.

Question to answer:
1. For Q to receive P 55,200 in full settlement of his interest in the firm, how much must be
realized from the sale of the firm’s non cash assets?

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