The partnership of Aa, Ba and Ka has been in business for 25 years. On December 31, Ka decided to retire from the partnership. The statement of financial position before the retirement of Ka is presented below:

Cash 40,000          

Accounts receivable 60,000

Inventory 140,000                      

Plant assets - net 400,000    

Loan to Aa 30,000          

Loan to Ka 40,000                    

Total assets 710,000                



Accounts payable 70,000

Notes payable 80,000

Loan from Ba 50,000

Aa, Capital (20%) 150,000

Ba, Capital (30%) 200,000

Ka, Capital (50%) 160,000

Total liabilities & equity 710,000



Required: Record the withdrawal of Ka under each of the following independent cases:

1.) Ka was paid P100,000 cash upon retirement. Capital of the partnership after Ka's retirement was to be P400,000.

2.) Ka was paid P180,000 cash upon retirement. Capital of the partnership after Ka's retirement was to be P290,000.

3.) Ka was paid P150,000 cash upon his retirement. The portion of goodwill attributable to Ka was recorded by the partnership.