Question
Randy and Joseph share profits and losses in a 7:3 ratio. Partnership books show the following before liquidation: Cash: P 30, 000; A/R (net): P
Randy and Joseph share profits and losses in a 7:3 ratio. Partnership books show the following before liquidation: Cash: P 30, 000; A/R (net): P 380, 000; Inventory: P 260, 000; Furniture (net): P 120, 000; A/P: P 165, 000; Randy, Capital: P 350, 000; Joseph, Capital: P 275, 000. Rosauro offered to buy the partnership assets and liabilities, excluding the cash, for P 760, 000 after they are restated at fair values. The fair values of the non-cash assets are as follows: A/R: P 350, 000; Inventory: P 250, 000; Furniture: P 135, 000. How much will Randy and Joseph receive as final settlement of their partnership interest?
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