On December 31, 2020, the unadjusted Statement of Financial Position of ABC Partnership shows the following data with profit or loss sharing agreement of 2:3:5: Total Assets 100,000 Total Liabilities 40,000 A, Capital В, Саpital C, Capital 10,000 20,000 30,000 On December 31, 2020, A decided to retire from the partnership. However, before the distribution of cash to A, data errors were discovered during the pre-retirement audit: • During 2020, the property, plant and equipment has not been subjected to revaluation by 15,000; The 2020 net income is overstated by 5,000. After the adjustment, A received retirement pay of 15,000 for his capital interest.

On December 31, 2020, the unadjusted Statement of Financial Position of ABC Partnership shows the following data with profit or loss sharing agreement of 2:3:5: Total Assets 100,000 Total Liabilities 40,000 A, Capital В, Саpital C, Capital 10,000 20,000 30,000 On December 31, 2020, A decided to retire from the partnership. However, before the distribution of cash to A, data errors were discovered during the pre-retirement audit: • During 2020, the property, plant and equipment has not been subjected to revaluation by 15,000; The 2020 net income is overstated by 5,000. After the adjustment, A received retirement pay of 15,000 for his capital interest.

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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