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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
