The following debit (credit) balances on the account of SAM Partnership are as follows: Sucrose, Capital (P1,000,000) Albedo, Capital ( 1,200,000) Mona, Capital ( ( 800,000) Sucrose, Loan 100,000 Albedo, Loan 300,000 Mona, Loan ( 100,000) Sucrose, Albedo and Mona currently allocate their profits and losses based on the ratio of 3:4:3, respectively. With the consent of the remaining partners, Albedo decided to retire from the partnership by selling 75% of his capital to Razor (outsider) for P750,000, and the remaining interest (including the loan) was sold to the partnership in which he received P50,000 in total. Required: Prepare journal entries regarding the partnership dissolution.
The following debit (credit) balances on the account of SAM Partnership are as follows: Sucrose, Capital (P1,000,000) Albedo, Capital ( 1,200,000) Mona, Capital ( ( 800,000) Sucrose, Loan 100,000 Albedo, Loan 300,000 Mona, Loan ( 100,000) Sucrose, Albedo and Mona currently allocate their profits and losses based on the ratio of 3:4:3, respectively. With the consent of the remaining partners, Albedo decided to retire from the partnership by selling 75% of his capital to Razor (outsider) for P750,000, and the remaining interest (including the loan) was sold to the partnership in which he received P50,000 in total. Required: Prepare journal entries regarding the partnership dissolution.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 3PB
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Transcribed Image Text:The following debit (credit) balances on the account of
SAM Partnership are as follows:
Sucrose, Capital
(P1,000,000)
Albedo, Capital
( 1,200,000)
Mona, Capital
( 800,000)
Sucrose, Loan
100,000
Albedo, Loan
300,000
Mona, Loan
( 100,000)
Sucrose, Albedo and Mona currently allocate their
profits and losses based on the ratio of 3:4:3,
respectively. With the consent of the remaining
partners, Albedo decided to retire from the partnership
by selling 75% of his capital to Razor (outsider) for
P750,000, and the remaining interest (including the
loan) was sold to the partnership in which he received
P50,000 in total.
Required: Prepare journal entries regarding the
partnership dissolution.
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