On January 1, 20x1, A and B, who share profits and losses on a 60:40 ratio, decided to liquidate their partnership. As of this date, their capital balances were1,200,000 and600,000, respectively. Before liquidation, the partnership had total assets of2,000,000. Net proceeds received from the sale of non-cash assets amounted to1,200,000. A received768,000 in the settlement of the partners' capital balances.

1.How much is the total loss on the sale of partnership assets?

a. 432,000

b. 720,000

b. 868,000

d. 0

2. How much did B receive in the settlement of his capital balance?

a. 218,000

b. 280,000

c. 312,000

d. 0

3. How much were the total liabilities of the partnership?

a. 320,000

b. 200,000

c. 180,000

d. 50,000

4.How much was the balance of cash before the sale of non-cash assets?

a. 80,000

b. 60,000

c. 40,000

d. 0

On January 1, 20x1, A and B decided to liquidate their partnership. As of this date, their capital balances were400,000 and800,000, respectively. The partners share in profits and losses on a 60:40 ratio. Before liquidation, the partnership had80,000 cash and120,000 liabilities. The partnership incurred loss of480,000 on the sale of non-cash assets. A is solvent but B is insolvent.

1. How much did A receive from the settlement of his capital balance?

a. 608,000

b. 112,000

c. 806,000

d. 0