The existing capital balances of Abnoy, Bitoy, and Caloy prior to retirement of Abnoy were as follows: Partners Capital P/L Ratio Abnoy P150,000 20% Bitoy 200,000 30% Caloy 250,000 50% Abnoy retired from the partnership by selling his whole interest in the partnership to Doy for P120,000. Liabilities of the partnership at this point is P400,000. After the retirement of Abnoy, how much is the total assets and capital of the partnership, respectively? A. P880,000 P880,000 B. P720,000 P720,000 C. P970,000 P570,000 D. P1M P600,000
The existing capital balances of Abnoy, Bitoy, and Caloy prior to retirement of Abnoy were as follows: Partners Capital P/L Ratio Abnoy P150,000 20% Bitoy 200,000 30% Caloy 250,000 50% Abnoy retired from the partnership by selling his whole interest in the partnership to Doy for P120,000. Liabilities of the partnership at this point is P400,000. After the retirement of Abnoy, how much is the total assets and capital of the partnership, respectively? A. P880,000 P880,000 B. P720,000 P720,000 C. P970,000 P570,000 D. P1M P600,000
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter19: Accounting For Partnerships
Section: Chapter Questions
Problem 4CE
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The existing capital balances of Abnoy, Bitoy, and Caloy prior to retirement of Abnoy were as follows:
Partners Capital P/L Ratio
Abnoy P150,000 20%
Bitoy 200,000 30%
Caloy 250,000 50%
Abnoy retired from the partnership by selling his whole interest in the partnership to Doy for P120,000. Liabilities of the partnership at this point is P400,000. After the retirement of Abnoy, how much is the total assets and capital of the partnership, respectively?
A. P880,000 P880,000
B. P720,000 P720,000
C. P970,000 P570,000
D. P1M P600,000
The capital balances of the partners are presented to you before the retirement of Y: X, P40,000; Y, P35,000; Z, P25,000. P/L ratio, equally. After the retirement of Y, the capital balance of X was P42,000. How much was the cash settlement to Y?
A. P31,000
B. P33,000
C. P37,000
D. P39,000
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