A, B and C were partners with capital balances on January 1, 2016, of P300,000, P200,000 and P100,000, respectively. On July 1, 2016, A retires from the partnership. On the date of retirement, the partnership net loss is P60,000 and the partners agreed that certain asset is to be revalued at P80,000 from its original cost of P50,000. The partners agreed further to pay A P225,000 in settlement of his interest. The remaining partners continue to operate under a new partnership. What is the total capital of the new partnership, after the retirement of A?

A, B and C were partners with capital balances on January 1, 2016, of P300,000, P200,000 and P100,000, respectively. On July 1, 2016, A retires from the partnership. On the date of retirement, the partnership net loss is P60,000 and the partners agreed that certain asset is to be revalued at P80,000 from its original cost of P50,000. The partners agreed further to pay A P225,000 in settlement of his interest. The remaining partners continue to operate under a new partnership. What is the total capital of the new partnership, after the retirement of A?

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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