er 30, 2022, AA decides to retire from the partnership. Net income of the partnership from January 1 until September 30 amounted to P200,000. Inventories carried at P50,000 was to be revalued to P70,000, based on the consensus of the partners. The partnership will pay AA P195,000 in full settlement of his interest in the partnership. The partnership books as of September 30 also provided the following information: Receivable from BB P40,000 Payable to CC 70,000 AA, drawing 15,000
AA, BB and CC were partners with capital balances on January 1, 2022 of P115,000, P150,000 and P200,000, respectively. They share
|
Receivable from BB |
P40,000 |
|
Payable to CC |
70,000 |
|
AA, drawing |
15,000 |
How much is the capital of BB in the partnership upon retirement of AA?
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