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A. Record the withdrawal of Daryl from the partnership under each of the following independent assumption: 1. Daryl is paid cash of P100,000 for the book value of his interest. 2. Daryl is paid cash of P120,000 for the book value of his interest.

A. Record the withdrawal of Daryl from the partnership under each of the following independent assumption: 1. Daryl is paid cash of P100,000 for the book value of his interest. 2. Daryl is paid cash of P120,000 for the book value of his interest.

FINANCIAL ACCOUNTING
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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Daryl decided to withdraw from Daryl, Lei, Stephen, and Jacob Partnership. They share profit and loss in the ratio of 2:3:2:3 and have capital balances of P100,000, P160,000, P100,000 and P140,000, respectively. The assets and liabilities of the partnership are fairly valued. Required: A. Record the withdrawal of Daryl from the partnership under each of the following independent assumption: 1. Daryl is paid cash of P100,000 for the book value of his interest. 2. Daryl is paid cash of P120,000 for the book value of his interest.
Transcribed Image Text:Daryl decided to withdraw from Daryl, Lei, Stephen, and Jacob Partnership. They share profit and loss in the ratio of 2:3:2:3 and have capital balances of P100,000, P160,000, P100,000 and P140,000, respectively. The assets and liabilities of the partnership are fairly valued. Required: A. Record the withdrawal of Daryl from the partnership under each of the following independent assumption: 1. Daryl is paid cash of P100,000 for the book value of his interest. 2. Daryl is paid cash of P120,000 for the book value of his interest.
B. Determine the capital balance of each remaining partner using assumption A2 above. What personal settlement will remaining partners have if they want to bring their capital balances to their profit and loss sharing ratio of 5:3:2 for Lei, Stephen, and Jacob, respectively?
Transcribed Image Text:B. Determine the capital balance of each remaining partner using assumption A2 above. What personal settlement will remaining partners have if they want to bring their capital balances to their profit and loss sharing ratio of 5:3:2 for Lei, Stephen, and Jacob, respectively?
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