JJ, MM and RR share profits and losses in the ratio of 3:2:1 respectively. It was agreed among the partners that JJ retires from the partnership and the partnership's assets are to be adjusted to their fair value of P210,000. The partners further agreed to pay JJ P64,000 cash for her total interest in the partnership. What is the capital balance of RR after the retirement of JJ? A. P35,000 C. P27,000 Pa2 000 D P33 000
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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