Alcantara is planning to withdraw from the partnership of Alcantara, Mariano, and Reyes on Jan. 1, 2006. At that time the balances in the partners' capital accounts are as follows: Alcantara Mariano Reyes P60,000 10,000 20,000 Prior to Alcantara's withdrawal, the three partners shared profits and losses equally. Required: 1. Prepare the journal entry to record Alcantara's withdrawal supposing she sold her interest in the partnership to Reyes for P70,000. 2. Suppose instead that Alcantara sold half her interest to Mariano for P35,000 and half her interest to Reyes for P35,000. Prepare the journal entry to record the withdrawal of Alcantara.
Alcantara is planning to withdraw from the partnership of Alcantara, Mariano, and Reyes on Jan. 1, 2006. At that time the balances in the partners' capital accounts are as follows: Alcantara Mariano Reyes P60,000 10,000 20,000 Prior to Alcantara's withdrawal, the three partners shared profits and losses equally. Required: 1. Prepare the journal entry to record Alcantara's withdrawal supposing she sold her interest in the partnership to Reyes for P70,000. 2. Suppose instead that Alcantara sold half her interest to Mariano for P35,000 and half her interest to Reyes for P35,000. Prepare the journal entry to record the withdrawal of Alcantara.
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 47P
Related questions
Question
DO NOT PROVIDED ANSWER IN IMAGE FORMAT
Transcribed Image Text:Problem #20
Withdrawal by Sale of Interest to Another Partner
Alcantara is planning to withdraw from the partnership of Alcantara, Mariano, and Reyes
on Jan. 1, 2006. At that time the balances in the partners' capital accounts are as follows:
Alcantara
Mariano
Reyes
P60,000
10,000
20,000
Prior to Alcantara's withdrawal, the three partners shared profits and losses equally.
Required:
1. Prepare the journal entry to record Alcantara's withdrawal supposing she sold her
interest in the partnership to Reyes for P70,000.
2.
Suppose instead that Alcantara sold half her interest to Mariano for P35,000 and half
her interest to Reyes for P35,000. Prepare the journal entry to record the withdrawal
of Alcantara.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT