Reference no: EM133153775

Question - Niña, Olaf, and Peter are partners for over 20 years sharing profits and losses equally. Their capital balances are as follows: Php250,000; Php200,000 and Php150,000, respectively. Olaf is scheduled for retirement during the period.

Required - Record the retirement of Olaf under each of the following independent cases:

a. Olaf is paid cash equal to the book value of her interest.

b. Olaf is paid Php260,000 cash for her interest; excess payment is treated as asset revaluation.

c. Olaf is paid Php260,000 cash for her interest; excess payment is treated as a bonus.

d. Olaf is paid Php150,000 cash for her interest; excess of her capital interest over the payment is treated as asset revaluation.

e. Olaf is paid Php150,000 cash for her interest; excess of her capital interest over the payment is treated as bonus.