Answered: On December 31, 2022, ABC Partnership’s…

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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On December 31, 2022, ABC Partnership’s Statement of Financial Positions shows that A, B and C have capital balances of 500,000, 300,000 and 200,000 with profit or loss ratio of 1:3:6. On January 1, 2023, C retired from the partnership and received 350,000. At the time of C’s retirement, an asset of the partnership is not fairly valued.

What is the capital balance of B after the retirement of C?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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