A, B and C were partners with capital balances on January 1, 2020 of 100,000, 150,000, and 200,000 respectively. Their profit and loss ratio is 50%, 30% and 20%, respectively. On July 1, 2020, A retires from the partnership. On the date of retirement the partnership net income is 140,000 and the partners agreed that inventories are to be revalued at 70,000 from its original cost of 50,000. The partnership agreed further to pay A, 195,000 in settlement of his interest. What are the capital balances of the remaining partners after the retirement of A using bonus method?
A, B and C were partners with capital balances on January 1, 2020 of 100,000, 150,000, and 200,000 respectively. Their profit and loss ratio is 50%, 30% and 20%, respectively. On July 1, 2020, A retires from the partnership. On the date of retirement the partnership net income is 140,000 and the partners agreed that inventories are to be revalued at 70,000 from its original cost of 50,000. The partnership agreed further to pay A, 195,000 in settlement of his interest. What are the capital balances of the remaining partners after the retirement of A using bonus method?
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter19: Accounting For Partnerships
Section: Chapter Questions
Problem 4CE
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Transcribed Image Text:A, B and C were partners with capital balances on January 1, 2020 of 100,000, 150,000, and 200,000
respectively. Their profit and loss ratio is 50%, 30% and 20%, respectively. On July 1, 2020, A retires from
the partnership. On the date of retirement the partnership net income is 140,000 and the partners agreed
that inventories are to be revalued at 70,000 from its original cost of 50,000. The partnership agreed further
to pay A, 195,000 in settlement of his interest. What are the capital balances of the remaining partners after
the retirement of A using bonus method?
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