On June 30, 2020, the statement of financial position for the partnership of A, B, and C together with their respective profits and loss ratios, were as follows: Assets, at cost - P200,000 A, Loan - 10,000 A, Capital (20%) - 35,000 B, Capital (30%) - 75,000 C, Capital (50%) - 80,000 A decided to retire from the partnership. by mutual agreement, the assets to be adjusted to their fair value of P220,000 at June 30, 2020. It was agreed that the partnership would pay A P60,000 cash for A's partnership interest, including A 's loan which is to be repaid in full. No goodwill/ asset revaluation is to be recorded. After A's retirement, what is the balance of B's capital account?
On June 30, 2020, the statement of financial position for the partnership of A, B, and C together with their respective profits and loss ratios, were as follows: Assets, at cost - P200,000 A, Loan - 10,000 A, Capital (20%) - 35,000 B, Capital (30%) - 75,000 C, Capital (50%) - 80,000 A decided to retire from the partnership. by mutual agreement, the assets to be adjusted to their fair value of P220,000 at June 30, 2020. It was agreed that the partnership would pay A P60,000 cash for A's partnership interest, including A 's loan which is to be repaid in full. No goodwill/ asset revaluation is to be recorded. After A's retirement, what is the balance of B's capital account?
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PB: The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a...
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On June 30, 2020, the
Assets, at cost - P200,000
A, Loan - 10,000
A, Capital (20%) - 35,000
B, Capital (30%) - 75,000
C, Capital (50%) - 80,000
A decided to retire from the partnership. by mutual agreement, the assets to be adjusted to their fair value of P220,000 at June 30, 2020. It was agreed that the partnership would pay A P60,000 cash for A's partnership interest, including A 's loan which is to be repaid in full. No
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