ABC Co. is undergoing liquidation. The following are the account balances after all the non-cashassets were sold:50,000 LiabilitiesA, Capital (30%)B, Capital (30%)C, Capital (40%)Cash120,00090,000(60,000)(100,000)The personal assets and liabilities of the partners are as follows:Personal assets80,000100,000192,000Personal liabilities90,00061,00080,000ABC wants to make an additional contribution of only P70,000, which A is refuting. If the doctrine ofmarshaling of assets is followed, how much of A's P90,000 equity would appear to be recoverable?a. 90,000b. 79,000c. 81,000d. 0

Doctrine of Marshalling of Assets:- A creditor who makes this doctrine principle , or we can say,…

ABC Co. is undergoing liquidation. The following are the account balances after all the non-cash assets were sold: Cash 50,000 Liabilities 120,000 90,000 A, Capital (30%) B, Capital (30%) (60,000) (100,000) C, Capital (40%) The personal assets and liabilities of the partners are as follows: Personal assets Personal liabilities A 80,000 90,000 B 100,000 61,000 80,000 с 192,000 C wants to make an additional contribution of only $70,000, which A is refuting. If the doctrine of marshaling of assets is followed, how much of A's P90,000 equity would appear to be recoverable?

ABC Co. is undergoing liquidation. The following are the account balances after all the non-cash assets were sold: Cash 50,000 Liabilities 120,000 90,000 A, Capital (30%) B, Capital (30%) (60,000) (100,000) C, Capital (40%) The personal assets and liabilities of the partners are as follows: Personal assets Personal liabilities A 80,000 90,000 B 100,000 61,000 80,000 с 192,000 C wants to make an additional contribution of only $70,000, which A is refuting. If the doctrine of marshaling of assets is followed, how much of A's P90,000 equity would appear to be recoverable?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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