Judy, Jenelle, and Vanessa shared profit and losses based on 5:3:2. Vanessa was allowed to withdrew from the partnership on 31 December 2020 with P600,000 cash as full settlement. The condensed balance sheet of the partnership as of that date was as follows: Assets Due from Vanessa P 250,000 Goodwill 2,000,000 Other Assets 4,750,000 Total Assets P 7,000,000 Liabilities and Capital Liabilities P 2,000,000 Due to Jenelle 750,000 Judy, Capital 1,750,000 Jenelle, Capital 1,500,000 Vanessa, Capital 1,000,000 Total Liabilities and Capital P 7,000,000 Using the partial adjustment of goodwill method, the new capital balances of the remaining partners after Vanessa’s withdrawal are: a. Judy, P1,842,750 and Jenelle, P1,556,250 b. Judy, P1,375,000 and Jenelle, P1,275,000 c. Judy, P2,000,000 and Jenelle, P1,650,000 d. Judy, P1,750,000 and Jenelle, P1,500,000
Judy, Jenelle, and Vanessa shared
withdrew from the
The condensed
Assets
Due from Vanessa P 250,000
Other Assets 4,750,000
Total Assets P 7,000,000
Liabilities and Capital
Liabilities P 2,000,000
Due to Jenelle 750,000
Judy, Capital 1,750,000
Jenelle, Capital 1,500,000
Vanessa, Capital 1,000,000
Total Liabilities and Capital P 7,000,000
Using the partial adjustment of goodwill method, the new capital balances of the remaining
partners after Vanessa’s withdrawal are:
a. Judy, P1,842,750 and Jenelle, P1,556,250
b. Judy, P1,375,000 and Jenelle, P1,275,000
c. Judy, P2,000,000 and Jenelle, P1,650,000
d. Judy, P1,750,000 and Jenelle, P1,500,000
Step by step
Solved in 3 steps
