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Determine the capitalization of the partnership

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Question - Ivy, Ichiro and Alexa are partners who shared profit and losses of 30%, 50% and 20% respectively, Ichiro decides to withdraw from the partnership. Their respective capital account balances. after partnership books have been adjusted as follow:

Ivy P60,000

Ichiro 85,000

Alexa 55,000

Required -

1. Prepare journal entry to record the withdrawal of Ichiro from the partnership under the following assumption;

a) Alexa buys his share for P90,000

b) Ivy buys 3/4 of his share and 1/4 by Alexa

c) Diane, an outsider buys his interest for P80,000.

2) Determine the capitalization of the partnership after Ichiro withdrawal in each of the given assumption.

Reference no: EM133070535

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