Question
The balance sheet as of July 31, 2018 for the partnership of X, Y, and Z show the following information: Total assets (at cost) P450,000
The balance sheet as of July 31, 2018 for the partnership of X, Y, and Z show the following information:
| Total assets (at cost) | P450,000 |
| Loan from X | 25,000 |
| X, Capital | 108,000 |
| Y, Capital | 113,000 |
| Z, Capital | 204,000 |
It was agreed among partners that X retires from the partnership and it was further agreed that the assets be adjusted to their fair values of P392,000 as of July 31,2018. The partnership would pay X P100,000 cash plus a non-cash asset with a fair value of P12,000 for Xs partnership interests. No goodwill is to be recorded. X, Y, and Z share profits and losses: 20%, 20%, and 60%, respectively.
What are the capital balances of Y and Z after X retires from the partnership?
Group of answer choices
105,300; 180,900
97,500; 157,500
103,750; 176,250
99,050; 162,150
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
