The balance sheet as of July 31, 2018 for the partnership of X, Y, and Z show the following information: Total assets (at cost) P450,000 Loan from X 25,000 X, Capital 108,000 Y, Capital 113,000 Z, Caphtal 204,000 It was agreed among partners that X retires from the partnership and it was further agreed that the assets be adjusted to their fair values of P392,000 as of July 31,2018. The partnership would pay X P100,000 cash plus a non-cash asset with a fair value of P12,000 for X's partnership interests. No goodwill is to be recorded. X, Y, and Z share profits and losses: 20%, 20%, and 60%, respectively.

The balance sheet as of July 31, 2018 for the partnership of X, Y, and Z show the following information: Total assets (at cost) P450,000 Loan from X 25,000 X, Capital 108,000 Y, Capital 113,000 Z, Caphtal 204,000 It was agreed among partners that X retires from the partnership and it was further agreed that the assets be adjusted to their fair values of P392,000 as of July 31,2018. The partnership would pay X P100,000 cash plus a non-cash asset with a fair value of P12,000 for X's partnership interests. No goodwill is to be recorded. X, Y, and Z share profits and losses: 20%, 20%, and 60%, respectively.

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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