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?
On June 30, 1998, the balance sheet for the
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
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