3. John withdraws from the partnership on September 30, 20X1. He decides to sell his interest to the remaining partners for P 900,000. The following are the capital balances of the partners as of September 30, 20X1: Partner Capital Balance John, Capital (30%) Andrew, Capital (30%) 300,000 200,000 Jess, Capital (40%) 190,000 Total 690,000 The partnership's profit for the third quarter ending September 30, 20X1 is P 300,000. Required: a. Compute the adjusted balances for each of the partners b. Provide the journal entries to record the necessary adjustment (the share in profit and the transfer of capital) in the partnership's capital structure as a result of John's withdrawal

3. John withdraws from the partnership on September 30, 20X1. He decides to sell his interest to the remaining partners for P 900,000. The following are the capital balances of the partners as of September 30, 20X1: Partner Capital Balance John, Capital (30%) Andrew, Capital (30%) 300,000 200,000 Jess, Capital (40%) 190,000 Total 690,000 The partnership's profit for the third quarter ending September 30, 20X1 is P 300,000. Required: a. Compute the adjusted balances for each of the partners b. Provide the journal entries to record the necessary adjustment (the share in profit and the transfer of capital) in the partnership's capital structure as a result of John's withdrawal

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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Dd.112.
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