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.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Problem #20
Withdrawal by Sale of Interest to Another Partner
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.
Transcribed Image Text:Problem #20 Withdrawal by Sale of Interest to Another Partner 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.
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