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ABC Partnership's net assets were P1,000,000 as of Jan. 1, 20x1. Partner A retires from the partnership on June 30, 20x1. The partnership earned profit of P300,000 for the six months ended June 30, 20x1. Partners A, B and C share profits and losses equally. If Partner A was paid P200,000 for his interest in the partnership, how much is the adjusted net assets of the partnership immediately after Partner A's retirement? (No goodwill is recognized.)

ABC Partnership's net assets were P1,000,000 as of Jan. 1, 20x1. Partner A retires from the partnership on June 30, 20x1. The partnership earned profit of P300,000 for the six months ended June 30, 20x1. Partners A, B and C share profits and losses equally. If Partner A was paid P200,000 for his interest in the partnership, how much is the adjusted net assets of the partnership immediately after Partner A's retirement? (No goodwill is recognized.)

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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12. Under Millan book. This is not a part of our exam but is included in the reference book and I want to review its answer.

12. ABC Partnership's net assets were P1,000,000 as of Jan. 1, 20x1. Partner A retires frem the partnership on June 30, 20x1. The partnership earned profit of P300,000 for the six months ended June 30, 20x1. Partners A, B and C share profits and losses equally. If Partner A was paid P200,000 for his interest in the partnership, how much is the adjusted net assets of the partnership immediately after Partner A's retirement? (No goodwill is recognized.) a. 800,000 b. 900,000 c. 1,100,000 d. Answer cannot be detemined
Transcribed Image Text:12. ABC Partnership's net assets were P1,000,000 as of Jan. 1, 20x1. Partner A retires frem the partnership on June 30, 20x1. The partnership earned profit of P300,000 for the six months ended June 30, 20x1. Partners A, B and C share profits and losses equally. If Partner A was paid P200,000 for his interest in the partnership, how much is the adjusted net assets of the partnership immediately after Partner A's retirement? (No goodwill is recognized.) a. 800,000 b. 900,000 c. 1,100,000 d. Answer cannot be detemined
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