A. Record the withdrawal of Daryl from the partnership under each of the following independent assumption: 1. Daryl is paid cash of P100,000 for the book value of his interest. 2. Daryl is paid cash of P120,000 for the book value of his interest.

SWFT Corp Partner Estates Trusts
42nd Edition
ISBN:9780357161548
Author:Raabe
Publisher:Raabe
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 59P
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Daryl decided to withdraw from Daryl, Lei,
Stephen, and Jacob Partnership. They share
profit and loss in the ratio of 2:3:2:3 and have
capital balances of P100,000, P160,000,
P100,000 and P140,000, respectively. The assets
and liabilities of the partnership are fairly valued.
Required:
A. Record the withdrawal of Daryl from the
partnership under each of the following
independent assumption:
1. Daryl is paid cash of P100,000 for the book
value of his interest.
2. Daryl is paid cash of P120,000 for the book
value of his interest.
Transcribed Image Text:Daryl decided to withdraw from Daryl, Lei, Stephen, and Jacob Partnership. They share profit and loss in the ratio of 2:3:2:3 and have capital balances of P100,000, P160,000, P100,000 and P140,000, respectively. The assets and liabilities of the partnership are fairly valued. Required: A. Record the withdrawal of Daryl from the partnership under each of the following independent assumption: 1. Daryl is paid cash of P100,000 for the book value of his interest. 2. Daryl is paid cash of P120,000 for the book value of his interest.
B. Determine the capital balance of each
remaining partner using assumption A2 above.
What personal settlement will remaining partners
have if they want to bring their capital balances to
their profit and loss sharing ratio of 5:3:2 for Lei,
Stephen, and Jacob, respectively?
Transcribed Image Text:B. Determine the capital balance of each remaining partner using assumption A2 above. What personal settlement will remaining partners have if they want to bring their capital balances to their profit and loss sharing ratio of 5:3:2 for Lei, Stephen, and Jacob, respectively?
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