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

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 22P

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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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