Alcantara is planning to withdraw from the partnership of Alcantara, Mariano, and Reyes on Jan. 1, 2006. At that time the balances in the partners' capital accounts are as follows: Alcantara Mariano Reyes P60,000 10,000 20,000 Prior to Alcantara's withdrawal, the three partners shared profits and losses equally. Required: 1. Prepare the journal entry to record Alcantara's withdrawal supposing she sold her interest in the partnership to Reyes for P70,000. 2. Suppose instead that Alcantara sold half her interest to Mariano for P35,000 and half her interest to Reyes for P35,000. Prepare the journal entry to record the withdrawal of Alcantara.
Alcantara is planning to withdraw from the partnership of Alcantara, Mariano, and Reyes on Jan. 1, 2006. At that time the balances in the partners' capital accounts are as follows: Alcantara Mariano Reyes P60,000 10,000 20,000 Prior to Alcantara's withdrawal, the three partners shared profits and losses equally. Required: 1. Prepare the journal entry to record Alcantara's withdrawal supposing she sold her interest in the partnership to Reyes for P70,000. 2. Suppose instead that Alcantara sold half her interest to Mariano for P35,000 and half her interest to Reyes for P35,000. Prepare the journal entry to record the withdrawal of Alcantara.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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