Kindly answer the problem below. Problem #20Withdrawal of a PartnerOn July 10, 2018, Partner Ibrahim decided to withdraw from the Cebedo, Basa andIbrahim Partnership. Their profit and loss ratio is 3:2:1, respectively. Partnership assetsare to be used to acquire Ibrahim's partnership interest. The statement of financialposition for the partnership on that date follows:Cebedo, Basa and IbrahimStatement of Financial PositionJuly 10, 2018AssetsLiabilities and Partners' CapitalP 45,000120,00060,000CashP 74,000LiabilitiesTrade Accounts Receivable (net)Plant Assets (net)Goodwill.(net)Cebedo, CapitalBasa, CapitalIbrahim, Capital36,000135,00030,00050,000P275,000TotalP275,000TotalRequired:Prepare the journal entries to record Ibrahim's withdrawal under each of the followingassumptions:1. Ibrahim is paid P54,000, and the excess amount paid over Ibrahim's capital accountbalance is recorded as a bonus to Ibrahim from Cebedo and Basa.2. Ibrahim is paid P45,000, and the difference is recorded as a bonus to Cebedo andBasa from Ibrahim.3. lbrahim accepted cash of P40,500 and plant assets (equipment) with a current fairvalue of P9,000. The equipment had cost P30,000 and was 60% depreciated, withno residual value (Record any gain or loss on the disposal of the equipment in thepartners' capital accounts).

When a partner withdraws from the business of the entity or when any partner take admission in…

1. Ibrahim is paid P54,000, and the excess amount paid over Ibrahim's capital account balance is recorded as a bonus to Ibrahim from Cebedo and Basa. 2. Ibrahim is paid P45,000, and the difference is recorded as a bonus to Cebedo and Basa from Ibrahim. 3. Ibrahim accepted cash of P40,500 and plant assets (equipment) with a current fair value of P9,000. The equipment had cost P30,000 and was 60% depreciated, with no residual value (Record any gain or loss on the disposal of the equipment in the partners' capital accounts).

1. Ibrahim is paid P54,000, and the excess amount paid over Ibrahim's capital account balance is recorded as a bonus to Ibrahim from Cebedo and Basa. 2. Ibrahim is paid P45,000, and the difference is recorded as a bonus to Cebedo and Basa from Ibrahim. 3. Ibrahim accepted cash of P40,500 and plant assets (equipment) with a current fair value of P9,000. The equipment had cost P30,000 and was 60% depreciated, with no residual value (Record any gain or loss on the disposal of the equipment in the partners' capital accounts).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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