In the ABC Partnership, A's capital is P40,000,B's capital is P70,000, and C's Capital is P20,000. They share income in 4:1:1 ratio, respectively. C is retiring from the partnership What is the journal entry to record the withdrawal if he is paidP40 000?
In the ABC Partnership, A's capital is P40,000,B's capital is P70,000, and C's Capital is P20,000. They share income in 4:1:1 ratio, respectively. C is retiring from the partnership What is the journal entry to record the withdrawal if he is paidP40 000?
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...
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![In the ABC Partnership, A's capital is P40,000,B's capital is
P70,000, and C's Capital is P20,000. They share income in a
4:1:1 ratio, respectively. C is retiring from the partnership.
What is the journal entry to record the withdrawal if he is
paidP40,000?
A) C, capital (debit) 40,000 Cash (credit) 40,000
C, capital (debit) 20,000 A, capital (debit)16,00 B,
В
capital (debit) 4,000 Cash (credit) 40,000
C, capital (debit) 20,000 A, capital (debit)4,000 B,
capital (debit) 16,000 Cash (credit) 40,000
Cash, capital (debit) 40,000 A, capital (debit)4,000
D)
B, capital (debit) 16,000 C, capital (credit) 40,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa081141b-143c-4d32-b3d4-30fe9e44081a%2F290cde8a-d8f3-430e-8ca1-93b581a9803c%2Fg0ktgs8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In the ABC Partnership, A's capital is P40,000,B's capital is
P70,000, and C's Capital is P20,000. They share income in a
4:1:1 ratio, respectively. C is retiring from the partnership.
What is the journal entry to record the withdrawal if he is
paidP40,000?
A) C, capital (debit) 40,000 Cash (credit) 40,000
C, capital (debit) 20,000 A, capital (debit)16,00 B,
В
capital (debit) 4,000 Cash (credit) 40,000
C, capital (debit) 20,000 A, capital (debit)4,000 B,
capital (debit) 16,000 Cash (credit) 40,000
Cash, capital (debit) 40,000 A, capital (debit)4,000
D)
B, capital (debit) 16,000 C, capital (credit) 40,000
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