Question
Rico, Sean and Tim are partners sharing profits in the ratio of 3:2:1 respectively. Capital accounts are P250,000, P150,000 and P100,000 on December 31, 2015
Rico, Sean and Tim are partners sharing profits in the ratio of 3:2:1 respectively. Capital accounts are P250,000, P150,000 and P100,000 on December 31, 2015 when Tim decides to withdraw. It is agreed to pay P150,000 for Tim's investment. Profits after the withdrawal of Tim are to be shared equally. What is the entry required to record the withdrawal of Tim under the bonus method?
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College Accounting A Practical Approach
Authors: Jeffrey Slater
12th edition
978-0132772068, 133468100, 013277206X, 9780133468106, 978-0133133233
