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The following inf PARTNERSHIP.

The following inf PARTNERSHIP.

FINANCIAL ACCOUNTING
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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The following information was taken from the books of SAMPALOC and SONS PARTNERSHIP. Capital Balance P5,000,000 Profit & Loss Ratio Sampaloc, Capital Kamatchili, Capital Kaimito, Capital 35% 2,500,000 1,500,000 33% 32% Kaimito is to withdrew from the partnership by selling 30% of his capital interest to Sampaloc at 2% more than his capital interest, and will sell 70% of his capital to Kamatchili at book value. After the withdrawal of Kaimito, the remaining partners will divide their profit and loss equally. Instruction: 1. Give the entry to record the retirement of Kaimito. 2. If the remaining partners were to have equal capital interest and share in profit and loss, how much additional cash should one of the partners invest?
Transcribed Image Text:The following information was taken from the books of SAMPALOC and SONS PARTNERSHIP. Capital Balance P5,000,000 Profit & Loss Ratio Sampaloc, Capital Kamatchili, Capital Kaimito, Capital 35% 2,500,000 1,500,000 33% 32% Kaimito is to withdrew from the partnership by selling 30% of his capital interest to Sampaloc at 2% more than his capital interest, and will sell 70% of his capital to Kamatchili at book value. After the withdrawal of Kaimito, the remaining partners will divide their profit and loss equally. Instruction: 1. Give the entry to record the retirement of Kaimito. 2. If the remaining partners were to have equal capital interest and share in profit and loss, how much additional cash should one of the partners invest?
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