On June 30, 2030, the statement of financial position for the partnership of XYZ, together with their respective profit and loss ratio, were as follows: Assets, at carrying value P 360,000 XXX, loan 18,000 XXX, capital (20%) 84,000 YYY, capital (20%) 78,000 ZZZ, capital (60%) 180,000 360,000 XXX had decided to retire from the partnership. By mutual agreement, the assets are to be adjusted to their fair value of P432,000 at June 30, 2030. It was agreed that the partnership would pay XXX P122,400 cash for his interest in the partnership, including XXX’ loan which is to be repaid in full. After XXX’ retirement, what is the balance of YYY capital account? A. 78,000 B. 90,900 C. 92,400 D. 72,900

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...
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On June 30, 2030, the statement of financial position for the partnership of XYZ, together
with their respective profit and loss ratio, were as follows:
Assets, at carrying value P 360,000
XXX, loan 18,000
XXX, capital (20%) 84,000
YYY, capital (20%) 78,000
ZZZ, capital (60%) 180,000
360,000

XXX had decided to retire from the partnership. By mutual agreement, the assets are to be adjusted to their fair value of P432,000 at June 30, 2030. It was agreed that the partnership would pay XXX P122,400 cash for his interest in the partnership, including XXX’ loan which is to be repaid in full. After XXX’ retirement, what is the balance of YYY capital account?


A. 78,000 B. 90,900 C. 92,400 D. 72,900

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