What amount is due to G's estate on December 31? Partners D, E, F, and G, share profits 40%, 30%, 15%, and 15%, respectively. Theirpartnership agreement provides that in the event of the death of a partner, the firmball continue until the end of the fiscal period. Profits shall be considered to haveheen earned proportionately during this period, and the deceased partners' capitalshall be adjusted by the proper share of the profit or loss until the date of death.From that date until the date of settlement with the estate there shall be addedinterest at 6% computed on the adjusted capital. The remaining partners shallcontinue to share profits in the old ratio. Payment to the estate shall be madewithin one year from the date of the partner's death. Partner G died on November16 On December 31, the end of the six-month period, account balances on thepartnership books before the income summary account is closed are as follows:P15,000140,000190,00090,00033,000Notes payableAccounts payableD, capitalE, capitalF, capitalG, capitalIncome summaryP30,000141,000CashAccounts receivableInventories84,00075,00048,00045,00045,000P468.000Machinery, netStore furniture, netP468,000The income summary account is closed on December 31. On this date, F decides toretire, D and E agree to pay the balance in F's capital account after distributions ofprofit, less 20%, and issue a partnership 60-day, 6% note to F in settlement.

Partnership refers to a business formed by two or more people sharing profit and losses at a…

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Accounting

What amount is due to G's estate on December 31?

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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