By mutual agreement, the non-cash assets of P160,000 were to be adjusted to their fairmarket value of P216,000 at December 31, 2014. It was agreed that the partnership wouldpay Sianosa P16,200 cash for her partnership's interest, including, her loan which is to berepaid in full.Required:1. Prepare adjusting entry to reflect in the book the revaluation of assets.2. Journal Entry to retire Sianosa from the partnership. 4-6Christy Sianosa, Josephine Rosete and Lynn Facturan are partners who shared profit and lossof 2:2:4, The post-closing'trial balance was presented below before Sianosa has decided toretire from the partnership:DebitCreditCashP 20,000Accounts Receivable35,000Furniture & Fixtures50,000P 9,000C. Sianosa, LoanC. Sianosa, CapitalJ. Rosete, CapitalL. Facturan, CapitalTota!42,00039,00090,000P180,000P180.000

The Retirement of an old partner in a partnership is treated as a reconstitution of the partnership…

By mutual agreement, the non-cash assets of P160,000 were to be adjusted to their market value of P216,000 at December 31, 2014. It was agreed that the partnership wo pay Sianosa P16,200 cash for her partnership's interest, including, her loan which is to repaid in full. Required: Prepare adjusting entry to reflect in the book the revaluation of assets. 2. Journal Entry to retire Sianosa from the partnership. 1.

By mutual agreement, the non-cash assets of P160,000 were to be adjusted to their market value of P216,000 at December 31, 2014. It was agreed that the partnership wo pay Sianosa P16,200 cash for her partnership's interest, including, her loan which is to repaid in full. Required: Prepare adjusting entry to reflect in the book the revaluation of assets. 2. Journal Entry to retire Sianosa from the partnership. 1.

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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