The balance sheet for the partnership of Nina, Pinta, and Santa Maria at January 1, 2014 follows. The partners share profits and losses in the ratio of 3:2:5, respectively. Assets at cost P 480, 000 Liabilities P 135. 000 Nina, Capital 75, 000 Pinta, Capital 120, 000 Santa Maria, Capital 150.000 P 480,000 Nina is retiring from the partnership. By mutual agreement, the assets are to be adjusted to their fair value of P540, 000 at January 1, 2014. Pinta and Santa Maria agree that the partnership will pay Nina P135, 000 cash for her partnership interest. There is no goodwill is to be recorded. What is the balance of Pinta's capital account after Nina's retirement?
The balance sheet for the partnership of Nina, Pinta, and Santa Maria at January 1, 2014 follows. The partners share profits and losses in the ratio of 3:2:5, respectively. Assets at cost P 480, 000 Liabilities P 135. 000 Nina, Capital 75, 000 Pinta, Capital 120, 000 Santa Maria, Capital 150.000 P 480,000 Nina is retiring from the partnership. By mutual agreement, the assets are to be adjusted to their fair value of P540, 000 at January 1, 2014. Pinta and Santa Maria agree that the partnership will pay Nina P135, 000 cash for her partnership interest. There is no goodwill is to be recorded. What is the balance of Pinta's capital account after Nina's retirement?
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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Transcribed Image Text:The balance sheet for the partnership of Nina, Pinta, and Santa Maria at January 1, 2014 follows. The partners share profits and losses in the
ratio of 3:2:5, respectively.
Assets at cost
P 480,000
Liabilities
P 135, 000
Nina, Capital
75, 000
Pinta, Capital
120, 000
Santa Maria, Capital
150,000
P 480.000
Nina is retiring from the partnership. By mutual agreement, the assets are to be adjusted to their fair value of P540, 000 at January 1, 2014.
Pinta and Santa Maria agree that the partnership will pay Nina P135, 000 cash for her parlnership interest. There is no goodwill is to be
recorded. What is the balance of Pinta's capital account after Nina's retirement?
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