On December 31, 2030, ABC Partnership’s Statement of Financial Positions shows that A, B and C have capital balances of P1,000,000, P600,000 and P400,000 with profit or loss ratio of 1:3:6. On January 1, 2030, C retired from the partnership and received P700,000. At the time of C’s retirement, an asset of the partnership is undervalued. What is the capital balance of A after the retirement of C? a. P925,000 b. P1,075,000 c. P1,12500 d. P1,050,000
On December 31, 2030, ABC Partnership’s Statement of Financial Positions shows that A, B and C have capital balances of P1,000,000, P600,000 and P400,000 with profit or loss ratio of 1:3:6. On January 1, 2030, C retired from the partnership and received P700,000. At the time of C’s retirement, an asset of the partnership is undervalued. What is the capital balance of A after the retirement of C? a. P925,000 b. P1,075,000 c. P1,12500 d. P1,050,000
Chapter21: Partnerships
Section: Chapter Questions
Problem 11BCRQ
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Question
On December 31, 2030, ABC Partnership’s
On January 1, 2030, C retired from the partnership and received P700,000. At the time of C’s retirement, an asset of the partnership is undervalued.
What is the capital balance of A after the retirement of C?
a. P925,000
b. P1,075,000
c. P1,12500
d. P1,050,000
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