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If C retired and received ₱90,000 as a retirement price, how much will be the adjusted capital of A under bonus method?

If C retired and received ₱90,000 as a retirement price, how much will be the adjusted capital of A under bonus method?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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If C retired and received ₱90,000 as a retirement price, how much will be the adjusted capital of A under bonus method?

A, B and C are partners sharing profits and losses of 40%, 40% and 20%, respectively. The December 31, 2020 trial balance before any profit allocation was summarized as follows: Assets Liabilities and Capital Cash 230,000 Accounts payable 15,000 Inventories 120,000 Income summary 50,000 C, Loan A, Capital В, Сарital С, Сарital Total Liabilities & Capital 545.000 150,000 45,000 Equipment 10,000 Trademark 200,000 180,000 90,000 Total Assets 545,000 On January 1, 2021, a partner has decided to retire from the partnership and by mutual agreement among partners, the following have been arrived at: • Inventories amounting to P20,000 is considered obsolete and must be written off. • Equipment should be adjusted to their current value of P135,000. • Trademarks are to be written-off immediately before the retirement. It was agreed that the partnership will pay the retiring partner for his interest in the partnership inclusive of loan balance.
Transcribed Image Text:A, B and C are partners sharing profits and losses of 40%, 40% and 20%, respectively. The December 31, 2020 trial balance before any profit allocation was summarized as follows: Assets Liabilities and Capital Cash 230,000 Accounts payable 15,000 Inventories 120,000 Income summary 50,000 C, Loan A, Capital В, Сарital С, Сарital Total Liabilities & Capital 545.000 150,000 45,000 Equipment 10,000 Trademark 200,000 180,000 90,000 Total Assets 545,000 On January 1, 2021, a partner has decided to retire from the partnership and by mutual agreement among partners, the following have been arrived at: • Inventories amounting to P20,000 is considered obsolete and must be written off. • Equipment should be adjusted to their current value of P135,000. • Trademarks are to be written-off immediately before the retirement. It was agreed that the partnership will pay the retiring partner for his interest in the partnership inclusive of loan balance.
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