Question
he balance sheet as of September 30, 2030, for the partnership of DDD, EEE, and FFF shows the following information: Assets, P360,000; DDD, loan, P20,000;
he balance sheet as of September 30, 2030, for the partnership of DDD, EEE, and FFF shows the following information: Assets, P360,000; DDD, loan, P20,000; DDD, capital, P83,000; EEE, capital, P77,000; FFF, capital, P180,000. It was agreed among the partners that DDD retires from the partnership, and it was also further agreed that the assets should be adjusted to their fair value of P345,000 as of September 30, 2030. Net loss prior to the retirement of DDD amounts to P70,000. The partnership is to pay DDD P62,000 cash for DDD's partnership interest, which would include the payment of his loan. DDD, EEE, and FFF share profit 40%, 15%, and 45% respectively.
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