P, GG, and RR are partners with capital balances of P80,000, P200,000, and P120,000, respectively. Profits and losses are shared in a 3:2:1 ratio. Grey decided to withdraw and the partnership revalued its assets. The value of inventory was decreased by P20,000 and the value of land was increased by P50,000. PP and RR then agreed to pay GG P230,000 for his withdrawal from the partnership. Required: Assuming that revaluation increase and decrease was agreed by all partners recognized, prepare: 1. the journal entry/ies to record the revaluation of assets. 2. the journal entry to record GG’s withdrawal.
P, GG, and RR are partners with capital balances of P80,000, P200,000, and P120,000, respectively. Profits and losses are shared in a 3:2:1 ratio. Grey decided to withdraw and the partnership revalued its assets. The value of inventory was decreased by P20,000 and the value of land was increased by P50,000. PP and RR then agreed to pay GG P230,000 for his withdrawal from the partnership. Required: Assuming that revaluation increase and decrease was agreed by all partners recognized, prepare: 1. the journal entry/ies to record the revaluation of assets. 2. the journal entry to record GG’s withdrawal.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
PP, GG, and RR are partners with capital balances of P80,000, P200,000, and
P120,000, respectively.
decided to withdraw and the partnership revalued its assets. The value of
inventory was decreased by P20,000 and the value of land was increased by
P50,000. PP and RR then agreed to pay GG P230,000 for his withdrawal from
the partnership.
Required: Assuming that revaluation increase and decrease was agreed by all
partners recognized, prepare:
1. the
2. the journal entry to record GG’s withdrawal.
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