Maria, Leonora and Teresa are partners with adjusted capital balances of P165,000, P150,000 and P180,000 respectively and divide profit and loss equally. At the end of the year, Maria decides to withdraw from the partnership. Maria will receive cash settlement of P150,000 Instruction: Give the entry to record the withdrawal of Maria assuming - a. Bonus Method is used b. Revaluation of Asset method is usea

Maria, Leonora and Teresa are partners with adjusted capital balances of P165,000, P150,000 and P180,000 respectively and divide profit and loss equally. At the end of the year, Maria decides to withdraw from the partnership. Maria will receive cash settlement of P150,000 Instruction: Give the entry to record the withdrawal of Maria assuming - a. Bonus Method is used b. Revaluation of Asset method is usea

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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Concept explainers

Partnership Accounting

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.

Partner Admission and Withdrawal

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.

Question

Maria, Leonora and Teresa are partners with adjusted capital balances of P165,000,
P150,000 and P180,000 respectively and divide profit and loss equally. At the end of the
year, Maria decides to withdraw from the partnership. Maria will receive cash settlement
of P150,000
Instruction: Give the entry to record the withdrawal of Maria assuming-
a. Bonus Method is used
b. Revaluation of Asset method is usea

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