Question
On December 31, 2019, the condensed Statement of Financial position of ABC Partnership is presented below: Total Assets (at cost)P 90,000.00Payable to AbbaP5,000.00Abba, Capital20,750.00Baba, Capital19,250.00Cada,
On December 31, 2019, the condensed Statement of Financial position of ABC Partnership is presented below:
Total Assets (at cost)P 90,000.00Payable to AbbaP5,000.00Abba, Capital20,750.00Baba, Capital19,250.00Cada, Capital45,000.00TotalP 90,000.00
Abba, Baba and Cada share profits and losses in the ratio of 25%, 25% and 50%, respectively. Because of more important endeavor,It was mutually agreed among the partners that Abba retires from the partnership and the partnership's assets to be adjusted to their fair value of P102,000.00 as of December 31, 2019. The partnership would pay Abba P30,250 cash for his total interest in the partnership.
1. The capital balance of Baba after the retirement of Abba assuming the use of the partial goodwill method.
2. The capital balance of Baba after the retirement of Abba assuming the use of the bonus method.
3. The capital balance of Cada after the retirement of Abba assuming the use of the bonus method.
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