Reference no: EM133144116
Question - RETIREMENT/DEATH/WITHDRAWAL
PROBLEM 1 - Mew, Gulf, and Mild are partners who share profits and losses in a ratio of 3:1:2, respectively. Mild, Capital account has a P500,000 balance. Mew and Gulf have agreed to let Mild take P620,000 of the company's cash when he retires. Prepare the journal entry to record the withdrawal of Mild from the partnership.
PROBLEM 2 - Cheng is planning to withdraw from the partnership of Seoham, Jaechan, and Myungjun on January 3, 2022. At that time, the balances in the partners' capital accounts are as follows:
Seoham P60,000
Jaechan 10,000
Myungjun 20,000
Prior to Seoham's withdrawal, the three partners shared profits and losses equally.
a) Prepare the journal entry to record Seoham's withdrawal supposing he sold her interest in the partnership to Myungjun for P70,000.
b) Suppose instead that Seoham sold half his interest to Jaechan for P35,000 and half her interest to Myungjun for P35,000. Prepare the journal entry to record the withdrawal of Seoham.
PROBLEM 3 - The following condensed statement of financial position is for partnership of Zee, Nunew, and Mandee immediately prior to Mandee's withdrawal from the partnership:
|
Cash
|
P400,000
|
Liabilities
|
P100,000
|
|
Other assets
|
900,000
|
Zee, Capital
|
400,000
|
|
|
Nunew, Capital
|
300,000
|
|
|
Mandee, Capital
|
500,000
|
|
Total assets
|
P1,300,000
|
Total liabilities and capital
|
P1,300,000
|
The partners share profits and losses equally.
Prepare journal entries to record the withdrawal of Mandee given the following settlement prices:
a) P500,000
b) P550,000 (use bonus method only)
c) P450,000