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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Case number 5 only. The given problem is in the box (top) part.
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.
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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