After several years of operation, J retired from JKL Partnership. J, K and L have outstanding capital balances prior to J’s withdrawal of P100,000, P300,000 and P150,000, respectively. The partners also shares profits and losses 20%:50%:30% to J, K and L, respectively. J has a loan to the partnership totaling P30,000. The partnership also has outstanding loans: P50,000 to K and P10,000 to L. J agreed to take an item of equipment with a book value of P40,000 for an agreed value of P50,000. How much cash is necessary to for the full settlement of J’s interest? a. P5,000 b. P80,000
After several years of operation, J retired from JKL Partnership. J, K and L have outstanding capital balances prior to J’s withdrawal of P100,000, P300,000 and P150,000, respectively. The partners also shares profits and losses 20%:50%:30% to J, K and L, respectively. J has a loan to the partnership totaling P30,000. The partnership also has outstanding loans: P50,000 to K and P10,000 to L. J agreed to take an item of equipment with a book value of P40,000 for an agreed value of P50,000. How much cash is necessary to for the full settlement of J’s interest? a. P5,000 b. P80,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
After several years of operation, J retired from JKL Partnership. J, K and L
have outstanding capital balances prior to J’s withdrawal of P100,000,
P300,000 and P150,000, respectively. The partners also shares profits and
losses 20%:50%:30% to J, K and L, respectively. J has a loan to the
partnership totaling P30,000. The partnership also has outstanding loans:
P50,000 to K and P10,000 to L. J agreed to take an item of equipment with
a book value of P40,000 for an agreed value of P50,000. How much cash
is necessary to for the full settlement of J’s interest?
a. P5,000
b. P80,000
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