Show the solution in good accounting form Erik, John and Nate were partners with capital balances on January 2, 2020 of P70,000, P84,000 and P56,000
Show the solution in good accounting form Erik, John and Nate were partners with capital balances on January 2, 2020 of P70,000, P84,000 and P56,000
Chapter21: Partnerships
Section: Chapter Questions
Problem 2BCRQ
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Show the solution in good accounting form
Erik, John and Nate were partners with capital balances on January 2, 2020 of P70,000, P84,000 and P56,000, respectively. Their profit and loss sharing ratio is 3:5:2. On July 1, 2020, Erik retires from the partnership . On the date of retirement the partnership net profit from operations is P48,000. The partners agreed further to pay Erik P76,560 in settlement of his interest.
How much will be the capital of John after the retirement of Erik?
A. 113,600
B. 108,000
C. 94,933
D. 84,000
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ISBN:
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Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT