Accounting Partners x, y, z capital balances: 150000, 250000, and 450000, respectively. p/l based on capital. y became a pwd and thus incapable of performing his duties, so he withdrew, april 25. as at april 25: income summary 78700 (debit balance). partners agreed to a +reval (land) of 90000, and to give y a 10% interest from withdrawal date up to payment date, and a bonus of 20000. as of april 25, partner drawings were 3k, 10k, and 1k, respectively. Required: matrix for capital update for y and new p/l ratio for the remaining partners. cash distribution to y, july 25.
Accounting Partners x, y, z capital balances: 150000, 250000, and 450000, respectively. p/l based on capital. y became a pwd and thus incapable of performing his duties, so he withdrew, april 25. as at april 25: income summary 78700 (debit balance). partners agreed to a +reval (land) of 90000, and to give y a 10% interest from withdrawal date up to payment date, and a bonus of 20000. as of april 25, partner drawings were 3k, 10k, and 1k, respectively. Required: matrix for capital update for y and new p/l ratio for the remaining partners. cash distribution to y, july 25.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Accounting
Partners x, y, z capital balances: 150000,
250000, and 450000, respectively. p/l based on
capital. y became a pwd and thus incapable of
performing his duties, so he withdrew, april 25.
as at april 25: income summary 78700 (debit
balance). partners agreed to a +reval (land) of
90000, and to give y a 10% interest from
withdrawal date up to payment date, and a
bonus of 20000. as of april 25, partner drawings
were 3k, 10k, and 1k, respectively.
Required: matrix for capital update for y and
new p/l ratio for the remaining partners. cash
distribution to y, july 25.
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