K. Partners Prada, Paris and Paco have capital balances of P 90,000, P70,000 and P 40,000 respectively and they share profits in the ratio of3:3:4. Paco is no longer willing to contribute the amount of time andeffort to the partnership. If Paris purchases Paco's interest for P 64,000,what is the balance of Paris' capital account after the withdrawal ofPaco?

Solution: When a partner is retired from partnership, and his share is acquired by existing partner,…

is and Paco have capital balances of P 90,000, P respectively and they share profits in the ratio of er willing to contribute the amount of time and nip. If Paris purchases Paco's interest for P 64,000 Paris' capital account after the withdrawal of

is and Paco have capital balances of P 90,000, P respectively and they share profits in the ratio of er willing to contribute the amount of time and nip. If Paris purchases Paco's interest for P 64,000 Paris' capital account after the withdrawal of

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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Question

K. Partners Prada, Paris and Paco have capital balances of P 90,000, P
70,000 and P 40,000 respectively and they share profits in the ratio of
3:3:4. Paco is no longer willing to contribute the amount of time and
effort to the partnership. If Paris purchases Paco's interest for P 64,000,
what is the balance of Paris' capital account after the withdrawal of
Paco?

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