Question
Partner Axe, Max and Rax are partner sharing profits and losses equally. Below are their data: Axe Max Rax Total Capital 100,000 80,000 300,000 480,000
- Partner Axe, Max and Rax are partner sharing profits and losses equally. Below are their data:
|
| Axe | Max | Rax | Total |
| Capital | 100,000 | 80,000 | 300,000 | 480,000 |
| Drawings | 60,000 | 40,000 | 20,000 | 120,000 |
The partners decide to liquidate and their undistributed operating profit to liquidation amounted to P72,000. All of the partnership assets and income were all exhausted during liquidation. Unpaid liabilities amounted to P84,000. Axe is personally insolvent and the remaining partners are solvent. The total loss on realization of assets was
a. P360,000
b. P444,000
c. P480,000
d. P516,000
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College Accounting A Practical Approach Chapters 1-26
Authors: Jeffrey Slater
8th Edition
0130911429, 978-0130911421
