AHRI, AKALI and JINX are partners sharing profits and losses in the ratio of 3:2:1,respectively. On June 30, 2021 AHRI decided to withdraw from the partnership as he was offered a better opportunity outside the partnership. On the day after dividing profit for the year ended June 30, 2021, partners have a capital balances as follows: AHRI –P346,000 AKALI– P213,000 JINX– P133,000 It was agreed that AHRI is to be paid P310,000 and that assets are fairly valued. What would be the capital balance of AKALI after the withdrawal of AHRI?
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
AHRI, AKALI and JINX are partners sharing
AHRI –P346,000
AKALI– P213,000
JINX– P133,000
It was agreed that AHRI is to be paid P310,000 and that assets are fairly valued. What would be the capital balance of AKALI after the withdrawal of AHRI?
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