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Joel, JC, and LJ are partners with capital balances of P50,000, P80,000, and P120,000, and share profits and losses in the ratio of 2:4:4, respectively. Due to a house relocation, LJ decided to withdraw from the partnership. The partners agreed that machinery and equipment be increased by P85,000 upon dissolution. Upon settlement of ownership interest, LJ received P165,000. The capital balance of Joel immediately after the withdrawal of LJ would be closest to

Joel, JC, and LJ are partners with capital balances of P50,000, P80,000, and P120,000, and share profits and losses in the ratio of 2:4:4, respectively. Due to a house relocation, LJ decided to withdraw from the partnership. The partners agreed that machinery and equipment be increased by P85,000 upon dissolution. Upon settlement of ownership interest, LJ received P165,000. The capital balance of Joel immediately after the withdrawal of LJ would be closest to

SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 38P
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Joel, JC, and LJ are partners with capital balances of P50,000, P80,000, and P120,000, and share profits and losses in the ratio of 2:4:4, respectively. Due to a house relocation, LJ decided to withdraw from the partnership. The partners agreed that machinery and equipment be increased by P85,000 upon dissolution. Upon settlement of ownership interest, LJ received P165,000. The capital balance of Joel immediately after the withdrawal of LJ would be closest to
Transcribed Image Text:Joel, JC, and LJ are partners with capital balances of P50,000, P80,000, and P120,000, and share profits and losses in the ratio of 2:4:4, respectively. Due to a house relocation, LJ decided to withdraw from the partnership. The partners agreed that machinery and equipment be increased by P85,000 upon dissolution. Upon settlement of ownership interest, LJ received P165,000. The capital balance of Joel immediately after the withdrawal of LJ would be closest to
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