The balance sheet as of June 30, 2003 for the partnership of R. Vasquez, J.Watson, and L. Ylagan shows the following information: Total Assets P360,000 R. Vasquez, Loan R. Vasquez, Capital J. Watson , Capital L. Ylagan, Capital P20,000 83,000 77,000 180,000 P360,000 It was agreed among the partners that Vasquez retires from the partnership and it was further agreed that the assets be adjusted to their fair value of P408,000 as of June 30, 2003. The partnership would pay Vasquez, P121,000 cash for his partnership interest and includes the payment of loan to him. No goodwill is to be recorded. Vasquez, Watson and Ylagan share profits and losses , 25%, 25%, and 50% respectively. 14. What is Ylagan's capital balance after the retirement of Vasquez? c. P200,000 d. P560,000 a. P120,000 b. P180,000
The balance sheet as of June 30, 2003 for the partnership of R. Vasquez, J.Watson, and L. Ylagan shows the following information: Total Assets P360,000 R. Vasquez, Loan R. Vasquez, Capital J. Watson , Capital L. Ylagan, Capital P20,000 83,000 77,000 180,000 P360,000 It was agreed among the partners that Vasquez retires from the partnership and it was further agreed that the assets be adjusted to their fair value of P408,000 as of June 30, 2003. The partnership would pay Vasquez, P121,000 cash for his partnership interest and includes the payment of loan to him. No goodwill is to be recorded. Vasquez, Watson and Ylagan share profits and losses , 25%, 25%, and 50% respectively. 14. What is Ylagan's capital balance after the retirement of Vasquez? c. P200,000 d. P560,000 a. P120,000 b. P180,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the correct answer in choices A-D?
Kindly provide a solution and explanation.
Transcribed Image Text:The balance sheet as of June 30, 2003 for the partnership of R. Vasquez, J.Watson, and L.
Ylagan shows the following information:
Total Assets
P360,000
R. Vasquez, Loan
R. Vasquez, Capital
J. Watson , Capital
L. Ylagan, Capital
P20,000
83,000
77,000
180,000
P360,000
It was agreed among the partners that Vasquez retires from the partnership and it was
further agreed that the assets be adjusted to their fair value of P408,000 as of June 30,
2003. The partnership would pay Vasquez, P121,000 cash for his partnership interest and
includes the payment of loan to him. No goodwill is to be recorded.
Vasquez, Watson and Ylagan share profits and losses , 25%, 25%, and 50% respectively.
14. What is Ylagan's capital balance after the retirement of Vasquez?
c. P200,000
d. P560,000
a. P120,000
b. P180,000
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