The following balances as at October 31, 2016 for the Partnership of Wilma, Xelyn, and Yska were as follows: Cash $80,000 Xelyn, loan 24,000 Non-cash assets 640,000 Totals $744,000 Liabilities $24,000 Wilma, loan 36,000 Wilma, capital 168,000 Xelyn, capital 156,000 Yska, capital 360,000 Totals $744,000 Wilma has decided to retire from the partnership on October 31. Partners agreed to adjust the non-cash assets to their fair market value of $784,000. The estimated profit to October 31 is $160,000. Wilma will be paid $276,800 for her partnership interest inclusive of her loan which is to be paid in full. Their profit and loss ratio is 3:4:3 to Wilma, Xelyn and Yska, respectively. Required: Choice the correct answer with solutions. 1. What will be the balance of Xelyn capital account after the retirement of Wilma. a. $ 258,888 b. $ 264,114
The following balances as at October 31, 2016 for the Partnership of Wilma, Xelyn, and Yska were as follows: Cash $80,000 Xelyn, loan 24,000 Non-cash assets 640,000 Totals $744,000 Liabilities $24,000 Wilma, loan 36,000 Wilma, capital 168,000 Xelyn, capital 156,000 Yska, capital 360,000 Totals $744,000 Wilma has decided to retire from the partnership on October 31. Partners agreed to adjust the non-cash assets to their fair market value of $784,000. The estimated profit to October 31 is $160,000. Wilma will be paid $276,800 for her partnership interest inclusive of her loan which is to be paid in full. Their profit and loss ratio is 3:4:3 to Wilma, Xelyn and Yska, respectively. Required: Choice the correct answer with solutions. 1. What will be the balance of Xelyn capital account after the retirement of Wilma. a. $ 258,888 b. $ 264,114
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following balances as at October 31, 2016 for the Partnership of Wilma, Xelyn, and Yska were as follows:
Cash $80,000
Xelyn, loan 24,000
Non-cash assets 640,000
Totals $744,000
Liabilities $24,000
Wilma, loan 36,000
Wilma, capital 168,000
Xelyn, capital 156,000
Yska, capital 360,000
Totals $744,000
Wilma has decided to retire from the partnership on October 31. Partners agreed to adjust the non-cash assets to their fair market value of $784,000. The estimated profit to October 31 is $160,000. Wilma will be paid $276,800 for her partnership interest inclusive of her loan which is to be paid in full. Their profit and loss ratio is 3:4:3 to Wilma, Xelyn and Yska, respectively.
Required:
Choice the correct answer with solutions.
1. What will be the balance of Xelyn capital account after the retirement of Wilma.
a. $ 258,888
b. $ 264,114
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