1. Ibrahim is paid P54,000, and the excess amount paid over Ibrahim's capital account balance is recorded as a bonus to Ibrahim from Cebedo and Basa. 2. Ibrahim is paid P45,000, and the difference is recorded as a bonus to Cebedo and Basa from Ibrahim. 3. Ibrahim accepted cash of P40,500 and plant assets (equipment) with a current fair value of P9,000. The equipment had cost P30,000 and was 60% depreciated, with no residual value (Record any gain or loss on the disposal of the equipment in the partners' capital accounts).
1. Ibrahim is paid P54,000, and the excess amount paid over Ibrahim's capital account balance is recorded as a bonus to Ibrahim from Cebedo and Basa. 2. Ibrahim is paid P45,000, and the difference is recorded as a bonus to Cebedo and Basa from Ibrahim. 3. Ibrahim accepted cash of P40,500 and plant assets (equipment) with a current fair value of P9,000. The equipment had cost P30,000 and was 60% depreciated, with no residual value (Record any gain or loss on the disposal of the equipment in the partners' capital accounts).
Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 12.1BPR
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Kindly answer the problem below.
Transcribed Image Text:Problem #20
Withdrawal of a Partner
On July 10, 2018, Partner Ibrahim decided to withdraw from the Cebedo, Basa and
Ibrahim Partnership. Their profit and loss ratio is 3:2:1, respectively. Partnership assets
are to be used to acquire Ibrahim's partnership interest. The statement of financial
position for the partnership on that date follows:
Cebedo, Basa and Ibrahim
Statement of Financial Position
July 10, 2018
Assets
Liabilities and Partners' Capital
P 45,000
120,000
60,000
Cash
P 74,000
Liabilities
Trade Accounts Receivable (net)
Plant Assets (net)
Goodwill.(net)
Cebedo, Capital
Basa, Capital
Ibrahim, Capital
36,000
135,000
30,000
50,000
P275,000
Total
P275,000
Total
Required:
Prepare the journal entries to record Ibrahim's withdrawal under each of the following
assumptions:
1. Ibrahim is paid P54,000, and the excess amount paid over Ibrahim's capital account
balance is recorded as a bonus to Ibrahim from Cebedo and Basa.
2. Ibrahim is paid P45,000, and the difference is recorded as a bonus to Cebedo and
Basa from Ibrahim.
3. lbrahim accepted cash of P40,500 and plant assets (equipment) with a current fair
value of P9,000. The equipment had cost P30,000 and was 60% depreciated, with
no residual value (Record any gain or loss on the disposal of the equipment in the
partners' capital accounts).
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