A, B, and C are partners with capital balances on December 31, 200D of P 450,000, P 450,000 and P 300,000, respectively. Profits are shared equally. C wishes to withdraw and it is agreed that he is to take certain furniture and fixtures at their second-hand value of P 18,000 and note for the balance of his interest, The furniture and fixtures are carried on the books as fully depreciated. Brand new, the furniture and fixtures may cost P 30,000. 4.14 0000 REQUIRED: Give the entries necessary to record the withdrawal of C.
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.
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