X, Y, and Z are partners dividing profits and losses in the ratio of 5:3:2 and whose capital balances as of January 1, 2013 were P600,000, P400,000, and P300,000, respectively. Z is retiring from the partnership as of July 1, 2013. The partnership agreement provides that the books of accounts need not be closed upon the retirement of a partner. Net income is to be considered as having been realized proportionately during the period. The partnership estimated net income for 2013, P480,000. Prior to her retirement, Z paid personal expenses of P15,000 from the partnership funds. The partnership, on the other hand, collected P50,000 from personal receivable of Z and deposited the same for the account of the partnership. How much is the total amount due to Z as of the date of retirement
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
X, Y, and Z are partners dividing
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