Exercise 4 – 16. Withdrawal of a Partner with Downward Asset Revaluation Following are ledger balances in the books of partners Mark, Matthew, and James who share profits and losses equally: Cash P 600,000 Mark, Capital Matthew, Capital James, Capital 400,000 Other Assets 700,000 100,000 400,000 Accounts Payable 400,000 In view of the plans of the family of Mark to permanently settle in U.S.A., the partners decided to the best interest of all that Mark withdraw from the partnership venture. But prior to Mark's withdrawal, they all agreed to record a downward adjustment of P60,000 in the firm's property and equipment (included in Other Assets account) in order to reflect their current market values. Required: a. Record the revaluation of property and equipment. b. Record the withdrawal of Mark in the partnership.

Exercise 4 – 16. Withdrawal of a Partner with Downward Asset Revaluation Following are ledger balances in the books of partners Mark, Matthew, and James who share profits and losses equally: Cash P 600,000 Mark, Capital Matthew, Capital James, Capital 400,000 Other Assets 700,000 100,000 400,000 Accounts Payable 400,000 In view of the plans of the family of Mark to permanently settle in U.S.A., the partners decided to the best interest of all that Mark withdraw from the partnership venture. But prior to Mark's withdrawal, they all agreed to record a downward adjustment of P60,000 in the firm's property and equipment (included in Other Assets account) in order to reflect their current market values. Required: a. Record the revaluation of property and equipment. b. Record the withdrawal of Mark in the partnership.

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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