FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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On June 30, 1998, the balance sheet for the partnership of Coll, Maduro, and Prieto, together with their respective profit and loss ratios, was as follows:

 

            Assets, at cost                         P 180,000

 

            Coll, loan                                P    9,000

            Coll, capital (20%)                      42,000

            Maduro, capital (20%)                39,000

Prieto, capital (60%)                    90,000   

Total                                        P 180,000

 

Coll decided to retire from the partnership. By mutual agreement, the assets are to be adjusted to their fair value of P 216,000 at June 30, 1998. It was agreed that the partnership would pay Coll P 61,200 cash for Coll’s partnership interest, including Coll’s loan which is to be repaid in full. No goodwill is to be recorded. After Coll’s retirement, what is the balance of Maduro’s capital account?

a. P 36,450

b. 39,000

c. 45,450

d. 46,200

 

please help me understand my activity and I hope you include the computations so that I can understand

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