The following balances as of the end of 2016 for the partnership of X, Y, and Z, together with their respective profit and loss percentages, were as follows: Look on the picture X decided to retire from the partnership. Parties agreed to adjust the assets to their fair market value of P432,000 as of December 31, 2016. X will be paid P122,400 for X’ partnership interest inclusive of X loan which is to be repaid in full. No goodwill is to be recorded. After X, retirement. What will be the balance of Y’ capital account? a. P78,000 b. P72,900 c. P92,400 d. P90,900 Assuming that the P122,400 payment to X excludes his loan, what will be the balance of Y’s capital account, after X’s retirement? a. P78,000 b. P92,400 c. P90,900 d. P86,400
The following balances as of the end of 2016 for the partnership of X, Y, and Z, together with their respective profit and loss percentages, were as follows: Look on the picture X decided to retire from the partnership. Parties agreed to adjust the assets to their fair market value of P432,000 as of December 31, 2016. X will be paid P122,400 for X’ partnership interest inclusive of X loan which is to be repaid in full. No goodwill is to be recorded. After X, retirement. What will be the balance of Y’ capital account? a. P78,000 b. P72,900 c. P92,400 d. P90,900 Assuming that the P122,400 payment to X excludes his loan, what will be the balance of Y’s capital account, after X’s retirement? a. P78,000 b. P92,400 c. P90,900 d. P86,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following balances as of the end of 2016 for the
X decided to retire from the partnership. Parties agreed to adjust the assets to their fair market value of P432,000 as of December 31, 2016. X will be paid P122,400 for X’ partnership interest inclusive of X loan which is to be repaid in full. No
What will be the balance of Y’ capital account?
a. P78,000 b. P72,900 c. P92,400 d. P90,900
Assuming that the P122,400 payment to X excludes his loan, what will be the balance of Y’s capital account, after X’s retirement?
a. P78,000 b. P92,400 c. P90,900 d. P86,400
Transcribed Image Text:Assets
P 360,000
X, loan
X, capital (20%)
Y, capital (20%)
Z, capital (60%)
P 18,000
84,000
78,000
180,000
P 360.000
P 360.000
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