Exercise3: Retirement of a Partner G, H and I are partners whose capital balances as of January 1, 2019 are in the same proportion as their share in profit of 20:30:50. As of January 1, 2019, total partnership assets amount to P150,000 with the liabilities at P60,000. Their additional investments and withdrawals for 2019 are as follows: Additional Drawing P9,000 Investments G P15,000 18,000 12,000 H retires as of December 1, 2019, G and l agreed to a settlement for his share in equity plus 10% thereof after three months. Pending settlement, the amount due to H shall bear an H 10,000 interest of 12%. The partnership net income for 2019, prior to the above-mentioned interest, amounts to P32,400. Instructions: a. Determine the amount due to H as of December 31, 2019. b. Make the entries incidental to the retirement of H under each of the following assumptions: 1. The additional consideration is to be treated as a bonus from the remaining partners. 2. The additional consideration of 10% is H's share in asset revaluation:

Exercise3: Retirement of a Partner G, H and I are partners whose capital balances as of January 1, 2019 are in the same proportion as their share in profit of 20:30:50. As of January 1, 2019, total partnership assets amount to P150,000 with the liabilities at P60,000. Their additional investments and withdrawals for 2019 are as follows: Additional Drawing P9,000 Investments G P15,000 18,000 12,000 H retires as of December 1, 2019, G and l agreed to a settlement for his share in equity plus 10% thereof after three months. Pending settlement, the amount due to H shall bear an H 10,000 interest of 12%. The partnership net income for 2019, prior to the above-mentioned interest, amounts to P32,400. Instructions: a. Determine the amount due to H as of December 31, 2019. b. Make the entries incidental to the retirement of H under each of the following assumptions: 1. The additional consideration is to be treated as a bonus from the remaining partners. 2. The additional consideration of 10% is H's share in asset revaluation:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

kindly specify which option is correct.
c.Why the IPSASB developed the IPSASs? d.What are the scopes of the IPSASs?
Examine the key assumptions underlying the CAPM and the APT model?
Define the term understand ability.
Can you further explain this to me to better understand the concept on what I'm supposed to do and what formulas I need to apply.
1. What is a case and how to defining the Case and Creating Problem Statements? 2. What is Background of the Problem and Problem Statement?
What information is provided by this statement? Describe the steps to create the statement - choose either the direct or indirect method in your response.
Explain an example of external events.
Explain the Abstract and Opinion Method?
Explain the concepts and principles which underlie the SMEs standard
Who should select the contact user group—the vendor or the prospective user? Why?