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Ola Jadulco, Edgar Mabad and Diona Angnag are partners who shared profit and losses of 30%, 50% and 20% respectively. Edgar decides to withdraw from
Ola Jadulco, Edgar Mabad and Diona Angnag are partners who shared profit and losses of 30%, 50% and 20% respectively. Edgar decides to withdraw from the partnership. Their respective capital account balances after partnerships books have been adjusted as follow: Ola, P60,000; Edgar, P85,000; and Diona, P55,000. 1. Prepare a journal entry to records the withdrawal of Edgar from the partnership under the following assumptions: a. Diona buys his share for P90,000. b. Ola buys of his share and by Diona. c. Nato, an outsider buys his interest for P80,000. 2. Determine the capitalization of the partnership after Edgarss withdrawal in each of the given assumption.
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