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).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Kindly answer the problem below.
Transcribed Image Text:Problem #20
Withdrawal of a Partner
On July 10, 2018, Partner Ibrahim decided to withdraw from the Cebedo, Basa and
Ibrahim Partnership. Their profit and loss ratio is 3:2:1, respectively. Partnership assets
are to be used to acquire Ibrahim's partnership interest. The statement of financial
position for the partnership on that date follows:
Cebedo, Basa and Ibrahim
Statement of Financial Position
July 10, 2018
Assets
Liabilities and Partners' Capital
P 45,000
120,000
60,000
Cash
P 74,000
Liabilities
Trade Accounts Receivable (net)
Plant Assets (net)
Goodwill.(net)
Cebedo, Capital
Basa, Capital
Ibrahim, Capital
36,000
135,000
30,000
50,000
P275,000
Total
P275,000
Total
Required:
Prepare the journal entries to record Ibrahim's withdrawal under each of the following
assumptions:
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. lbrahim 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).
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 6 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education