Allan and Bobby formed a partnership called the AB Partnership by investing cash of 300,000 and P400,000 respectively. They share profit and loss ratio 2:3. Carlo of Singapore was admitted to the firm with an investment of P500,000 representing a 30% nterest. Allan decided to withdraw on June 3, 2022 for a cash settlement of P650,000. The artners decided that assets need not be revalued. How much was total partners' equity fter the retirement of Allan?
Allan and Bobby formed a partnership called the AB Partnership by investing cash of 300,000 and P400,000 respectively. They share profit and loss ratio 2:3. Carlo of Singapore was admitted to the firm with an investment of P500,000 representing a 30% nterest. Allan decided to withdraw on June 3, 2022 for a cash settlement of P650,000. The artners decided that assets need not be revalued. How much was total partners' equity fter the retirement of Allan?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Allan and Bobby formed a partnership called the AB Partnership by investing cash of
P300,000 and P400,000 respectively. They share profit and loss ratio 2:3. Carlo of
Singapore was admitted to the firm with an investment of P500,000 representing a 30%
interest. Allan decided to withdraw on June 3, 2022 for a cash settlement of P650,000. The
partners decided that assets need not be revalued. How much was total partners' equity
after the retirement of Allan?
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