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Problem - C, D, and E are partners with capital balances on December 31, 20x1 of P300,000, P250,000, and P200,000 respectively. Profits are shared equally. E wishes to withdraw and it is agreed that she is to take certain furniture and fixtures with the second-hand value of P50,000 for the balance of her interest. The furniture and fixtures are carried in the books at P65,000. Brand new, the furniture and fixtures may cost P80,000.
Required -
1. Prepare schedule of capital balances for the withdrawal of E.
2. Prepare journal entries for the relevant transactions.
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