29. The partnership of Bartolome, Tomas and Tadeo will end soon as Tadeo is no longer willing to contribute the amount of time and effort to the partnership that he has previously given. The partners share profits and losses in the ratio of 3:3:4, respectively. The partners have the following capital balances just prior to Tadeo’s withdrawal from the partnership. · Bartolome: P45,000 · Tomas: P35,000 · Tadeo: P25,000 If Tomas purchases Tadeo’s interest from Tadeo for P32,000 and no asset revaluation is recorded, the balance of Tomas capital account immediately after the withdrawal of Tadeo is
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
· Bartolome: P45,000
· Tomas: P35,000
· Tadeo: P25,000
If Tomas purchases Tadeo’s interest from Tadeo for P32,000 and no asset revaluation is recorded, the balance of Tomas capital account immediately after the withdrawal of Tadeo is
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