CJ decided to withdraw from his partnership with TF and LX. Before his withdrawal, CJ’s capital balance was P406,000, while TF’s was P448,000 and LX’s was P539,000. Also, the partnership’s total assets amounted to P3,150,000, but the partners agreed that a fixed asset was underdepreciated by P105,000. CJ, TF and LX share profits and losses in the ratio of 2:4:4, respectively. If CJ was paid P372,400 upon his retirement, how much is the remaining partnership net assets after his withdrawal?

CJ decided to withdraw from his partnership with TF and LX. Before his withdrawal, CJ’s capital balance was P406,000, while TF’s was P448,000 and LX’s was P539,000. Also, the partnership’s total assets amounted to P3,150,000, but the partners agreed that a fixed asset was underdepreciated by P105,000. CJ, TF and LX share profits and losses in the ratio of 2:4:4, respectively. If CJ was paid P372,400 upon his retirement, how much is the remaining partnership net assets after his withdrawal?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 11BCRQ

See similar textbooks

Similar questions

Chani contributes equipment to a partnership that she purchased 2 years ago for $10,000. The current book value is $7,500 and the market value is $9,000. At what value should the partnership record the equipment? A. $10,000 B. $9,000 C. $7,500 D. none of the above
Kaede, Itona, and Ritsu are partners with capital balances of P80,000, P200,000, and P120,000, respectively. Profits and losses are shared in a 3:2:1 ratio. Itona decided to withdraw and the partnership revalued its assets. The value of inventory was decreased by P20,000 and the value of land was increased by P50,000. Kaede and Ritsu then agreed to pay Itona P230,000 for his withdrawal from the partnership. Prepare the journal entry to record Itona’s withdrawal under the Bonus method, assuming the revaluation increase or decrease was agreed by all partners to be recognized. Asset revaluation method.
In May 1998, Imelda, a partner of an accounting firm decided to withdraw when the partners’ capital balances were: Mikee, P600,000; Raul, P600,000; Imelda, P400,000. It was agreed that Imelda is to take the partnership’s fully depreciated computer with a second hand value of P24,000 that cost the partnership P36,000. If profits and losses are shared equally, what would be the capital balances of the remaining partners after the retirement of Imelda? Mikee Raul__ a. P600,000 P600,000 b. 592,000 592,000 c. 608,000 608,000 d. 612,000 612,000 please help me understand my activity and I hope you include the computations so that I can understand
PP, GG, and RR are partners with capital balances of P80,000, P200,000, and P120,000, respectively. Profits and losses are shared in a 3:2:1 ratio. Grey decided to withdraw and the partnership revalued its assets. The value of inventory was decreased by P20,000 and the value of land was increased by P50,000. PP and RR then agreed to pay GG P230,000 for his withdrawal from the partnership.Required: Assuming that revaluation increase and decrease was agreed by all partners recognized, prepare:1. the journal entry/ies to record the revaluation of assets.2. the journal entry to record GG’s withdrawal.