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balances and P/L ratio of the remaining partners after C's Case 6: C retires and the partnership settles his interest for P32,000. Provide the journal entry and determine the capital retirement.

balances and P/L ratio of the remaining partners after C's Case 6: C retires and the partnership settles his interest for P32,000. Provide the journal entry and determine the capital retirement.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Answer Case number 6 only. The given problem is in the box (top part)

Case 6: C retires and the partnership settles his interest for Case 5: C withdraws from the partnership and sells his interest to B for P30,000. Provide the journal entry and determine the capital balances and P/L ratio of the remaining partners after C- withdrawal. balances and P/L ratio of the remaining partners after C's P32,000. Provide the journal entry and determine the capital retirement.
Transcribed Image Text:Case 6: C retires and the partnership settles his interest for Case 5: C withdraws from the partnership and sells his interest to B for P30,000. Provide the journal entry and determine the capital balances and P/L ratio of the remaining partners after C- withdrawal. balances and P/L ratio of the remaining partners after C's P32,000. Provide the journal entry and determine the capital retirement.
Case 1: D purchases one-half of A's capital interest for P70,000. balances: A (60%) P100,000; B (30%) P60,000; and C (10%) P20,000. | A, B and C are partners with the following P/L ratio and capital balances: A (60%) P100,000; B (30%) P60,000; and C (10%) P20 0 Case 1: D purchases one-half of A's capital interest for P70 0 Provide the journal entry under the 'book value' method. Case 2: D purchases 20% interest in the partnership from A, Band C for P60,000. Provide the journal entry under the 'book valud method and determine the capital balances of the partners after D's admission. Case 3: D invests P70,000 cash for a 20% interest in the partnership's net assets and profits. Provide the journal entry and determine the capital balances and P/L ratio of the partners after D's admission. Case 4: D wants to infuse capital to the partnership for a 10% interest in the net assets and profits. The partners determine that the net assets are fairly valued except for land carried at P365,000 but has a fair value of P410,000. If no bonus is to be given to any partner, how much is D's required investment?
Transcribed Image Text:Case 1: D purchases one-half of A's capital interest for P70,000. balances: A (60%) P100,000; B (30%) P60,000; and C (10%) P20,000. | A, B and C are partners with the following P/L ratio and capital balances: A (60%) P100,000; B (30%) P60,000; and C (10%) P20 0 Case 1: D purchases one-half of A's capital interest for P70 0 Provide the journal entry under the 'book value' method. Case 2: D purchases 20% interest in the partnership from A, Band C for P60,000. Provide the journal entry under the 'book valud method and determine the capital balances of the partners after D's admission. Case 3: D invests P70,000 cash for a 20% interest in the partnership's net assets and profits. Provide the journal entry and determine the capital balances and P/L ratio of the partners after D's admission. Case 4: D wants to infuse capital to the partnership for a 10% interest in the net assets and profits. The partners determine that the net assets are fairly valued except for land carried at P365,000 but has a fair value of P410,000. If no bonus is to be given to any partner, how much is D's required investment?
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