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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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