Advanced Financial Accounting
Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
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Chapter 15, Problem 15.16.9P
To determine

Buyout price higher than partner’s capital credit:when the agreed buyout price payable to retiring partner is higher than his capital credit, most partnerships would increase the amount as capital adjustment bonus. The excess amount above the capital credit of retiring partner is debited to remaining partner’s capital account in their profit sharing ratio.

To choose:The correct answer to determine the treatment of excess amount payable to retiring partner over and above his capital balance.

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