Unruh, Grey, and Carter are partners with capital balances of P80,000, P200,000, and P120,000,respectively. Profits and losses are shared in a 3:2:1 ratio. Grey decided to withdraw and thepartnership revalued its assets. The value of inventory was decreased by P20,000 and the value ofland was increased by P50,000. Unruh and Carter then agreed to pay Grey P230,000 for hiswithdrawal from the partnership. Prepare the journal entry to record Grey's withdrawal under the full goodwill method. *
Unruh, Grey, and Carter are partners with capital balances of P80,000, P200,000, and P120,000,respectively. Profits and losses are shared in a 3:2:1 ratio. Grey decided to withdraw and thepartnership revalued its assets. The value of inventory was decreased by P20,000 and the value ofland was increased by P50,000. Unruh and Carter then agreed to pay Grey P230,000 for hiswithdrawal from the partnership. Prepare the journal entry to record Grey's withdrawal under the full goodwill method. *
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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