a. Windy is to receive P200,000 as cash settlement of her interest. Partnership assets are fairly valued. How much is the decrease in Gain, Capital as a result of Windy’s withdrawal?Required to answer. Single line text.

b. Windy is to receive P240,000 as settlement of her interest. Assume that any difference between this amount and the carrying value of her capital indicates that some assets have fair values in excess of carrying values. What would be the credit to Witt, capital as a result of asset revaluation.

c. Gan and Witty buy 1/3 and 2/3, respectively of Windy’s interest for P40,000 and P80,000. How much is Gain, capital immediately after Windy’s retirement.

d. Gain and Witty buy ¼ and ¾, respectively, of Windy’s interest for P30,000 and P90,000. These prices indicate that some assets are overvalued. How is this overvaluation?

e. Allowance for uncollectible accounts of P16,000 and equipment impairment loss of P32,000 would be recognized. The partnership would pay an amount to Windy equal to her adjusted capital. How much is this cash settlement?.

f. Windy is to receive P128,000 as cash settlement. All assets and liabilities are fairly valued. How much would be the capital balance of Witt immediately after the withdrawal of Windy?

 

.Presented below is the condensed statement of financial position of the partnership of Gain, Witt and Windy. The partners share profits and losses in the ratio of 6:3:1 respectively Cash 340,000 Other assets 1,660,000 Liabilities 320,000 Gian, capital Witt, capital Windy, capital 1,008,000 504,000 168,000