P, GG, and RR are partners with capital balances of P80,000, P200,000, and  P120,000, respectively. Profits and losses are shared in a 3:2:1 ratio. Grey  decided to withdraw and the partnership revalued its assets. The value of  inventory was decreased by P20,000 and the value of land was increased by  P50,000. PP and RR then agreed to pay GG P230,000 for his withdrawal from  the partnership. Required: Assuming that revaluation increase and decrease was agreed by all  partners recognized, prepare: 1. the journal entry/ies to record the revaluation of assets. 2. the journal entry to record GG’s withdrawal.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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PP, GG, and RR are partners with capital balances of P80,000, P200,000, and 
P120,000, respectively. Profits and losses are shared in a 3:2:1 ratio. Grey 
decided to withdraw and the partnership revalued its assets. The value of 
inventory was decreased by P20,000 and the value of land was increased by 
P50,000. PP and RR then agreed to pay GG P230,000 for his withdrawal from 
the partnership.
Required: Assuming that revaluation increase and decrease was agreed by all 
partners recognized, prepare:
1. the journal entry/ies to record the revaluation of assets.
2. the journal entry to record GG’s withdrawal.

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