BEAST, a partner in AXIES Accounting firm, decided to retire from the partnership. BEAST has a 30% share in profit or loss of the partnership. In the final settlement of BEAST's interest, the partnership paid him P86,000, although his capital balance before his retirement was only P80,000. The P6,000 difference implied that an equipment was undervalued, for which an appropriate adjustment was taken up in the books of the partnership. The total partner's capitals before BEAST's retirement and before adjustment of equipment to fair value was P270,000. What would be partnership’s net assets after the retirement of BEAST?
BEAST, a partner in AXIES Accounting firm, decided to retire from the partnership. BEAST has a 30% share in profit or loss of the partnership. In the final settlement of BEAST's interest, the partnership paid him P86,000, although his capital balance before his retirement was only P80,000. The P6,000 difference implied that an equipment was undervalued, for which an appropriate adjustment was taken up in the books of the partnership. The total partner's capitals before BEAST's retirement and before adjustment of equipment to fair value was P270,000. What would be partnership’s net assets after the retirement of BEAST?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
BEAST, a partner in AXIES Accounting firm, decided to retire from the
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education