Bee, Cee and Dee Partnership On January 2, 2016, the capital balances and profit and loss ratio of Bee, Cee and Dee are as follows: Partners Capital balances P&L Ratio В P 10,000 15,000 50% Сее 30% Dee 20,000 20% On April 30, 2016, Bee withdraws from the partnership. The net incomed of the partnership for the four months ended April 30, 2016 is P140,000. It is agreed that the inventory costing P5,000 has market value of P7,000 on April 30, 2016 Case 1: Settlement equals withdrawing partner's interest. Assume that Bee agrees to accept payment equal to his interest. Prepare the journal entries to record the transaction on the following: a. Distribution of profit b. Adjustment of inventory account Settlement to Bee
Bee, Cee and Dee Partnership On January 2, 2016, the capital balances and profit and loss ratio of Bee, Cee and Dee are as follows: Partners Capital balances P&L Ratio В P 10,000 15,000 50% Сее 30% Dee 20,000 20% On April 30, 2016, Bee withdraws from the partnership. The net incomed of the partnership for the four months ended April 30, 2016 is P140,000. It is agreed that the inventory costing P5,000 has market value of P7,000 on April 30, 2016 Case 1: Settlement equals withdrawing partner's interest. Assume that Bee agrees to accept payment equal to his interest. Prepare the journal entries to record the transaction on the following: a. Distribution of profit b. Adjustment of inventory account Settlement to Bee
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter19: Accounting For Partnerships
Section: Chapter Questions
Problem 7SPA
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Transcribed Image Text:Problem on Retirement/Withdrawal/Death of a Partner
Bee, Cee and Dee Partnership
On January 2, 2016, the capital balances and profit and loss ratio of Bee, Cee and Dee are as follows:
Partners
Capital balances
P &L Ratio
Bee
P 10,000
50%
Сее
15,000
30%
Dee
20,000
20%
On April 30, 2016, Bee withdraws from the partnership. The net incomed of the partnership for the four months ended
April 30, 2016 is P140,000. It is agreed that the inventory costing P5,000 has market value of P7,000 on April 30, 2016.
Case 1: Settlement equals withdrawing partner's interest. Assume that Bee agrees to accept payment equal to his
interest. Prepare the journal entries to record the transaction on the following:
a. Distribution of profit
b. Adjustment of inventory account
c. Settlement to Bee
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