Question
A summary balance sheet for the DI, KANYA, MAHAL Partnership on December 31, 2021 is shown below. Partners DI, KANYA, MAHAL allocate profit and loss
A summary balance sheet for the DI, KANYA, MAHAL Partnership on December 31, 2021 is shown below. Partners DI, KANYA, MAHAL allocate profit and loss in their respective ratios of 2:3:5. The partnership agreed to pay partner MAHAL P300,000 for his partnership interest upon his retirement from the partnership on January 1, 2021.
Assets
CashP400,000
Inventory300,000
Land500,000
Building-net800,000
Total assetsP2,000,000
Equities
DI, capitalP1,000,000
KANYA, capital750,000
MAHAL, capital250,000
Total equitiesP2,000,000
Required: Prepare the journal entry to reflect MAHAL's retirement from the partnership. USE BONUS METHOD, ASSET REVALUATION METHOD (BOTH PARTIAL AND FULL REVALUATION) and compute the capital balances after MAHAL retirement for each method.
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Financial Accounting
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
12th edition
134725980, 9780134726656 , 978-0134725987
