On December 21, 2020, the unadjusted Statement of Financial Position of UFC Partnership shows the 5. following data with profit or loss sharing agreement of 2:3:5 Total assets P 100,000,000 \umber P 10,000,000 Fritz 20,000,000 Total liabilities P 40,000,000 Carol 30,000,000 On December 31, 2020, Umber decided to retire from the partnership. However, before the distribution of cash to Umber, the following data errors were discovered during the pre-retirement audit: a. During 2020, the property, plant and equipment has to be subject to revaluation surplus of P 15,000,000 b. The 2020 net income is overstated by P 5,000,000 After the adjustment, Umber received retirement pay of P 15,000,000 for his capital interest. What is the capital balance of Fritz after the retirement of Umber? P 23,000,000 b. P 21,000,000 P 18,875,000 d. P 21,875,000 a

On December 21, 2020, the unadjusted Statement of Financial Position of UFC Partnership shows the 5. following data with profit or loss sharing agreement of 2:3:5 Total assets P 100,000,000 \umber P 10,000,000 Fritz 20,000,000 Total liabilities P 40,000,000 Carol 30,000,000 On December 31, 2020, Umber decided to retire from the partnership. However, before the distribution of cash to Umber, the following data errors were discovered during the pre-retirement audit: a. During 2020, the property, plant and equipment has to be subject to revaluation surplus of P 15,000,000 b. The 2020 net income is overstated by P 5,000,000 After the adjustment, Umber received retirement pay of P 15,000,000 for his capital interest. What is the capital balance of Fritz after the retirement of Umber? P 23,000,000 b. P 21,000,000 P 18,875,000 d. P 21,875,000 a

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

See similar textbooks