What are the capital balances of reyes and suarez

Assignment Help Financial Accounting

Reference no: EM132770105

Problem 1: Perez, Reyes, and Suarez were partners with capital balances on January 1, 2015 of P100,000, P150,000, and P200,000, respectively. Their profit and loss ratio is 5:3:2. On July 1, 2015, Perez retires from the partnership. On that date of retirement, the partnership net income is P140,000 and the partners agreed that inventories are to be revalued at P70,000 from its original cost of P50,000. The partners agreed further to pay Perez P195,000 in settlement of his interest. What are the capital balances of Reyes and Suarez after the retirement of Perez?

A. P 189,000; P 226,000

B. P 198,000; P 232,000

C. P 207,000; P 238,000

D. P 220,000; P 226,000

Reference no: EM132770105

Questions Cloud

What are sandra fixed costs for the month : Sandra's Cutting Station offers, The average price for a haircut is $14. Sandra pays herself $6000 per month. What are Sandra's fixed costs for the month?

Select an appropriate engineering-based project : Select an appropriate engineering-based project, giving reasons for the selection - Conduct project activities, recording progress against original project plan

Is something lost digitally : What is different? What is the same? Is something lost digitally? Is something gained digitally?

How much total amount due to z as of date of retirement : Personal receivable of Z and deposited the same for the account of the partnership. How much is the total amount due to Z as of the date of retirement?

What are the capital balances of reyes and suarez : The partners agreed further to pay Perez P195,000 in settlement of his interest. What are the capital balances of Reyes and Suarez after the retirement of Perez

Developing security : Developing a Security - Testing Tool Your manager at security consulting company has asked you to develop a tool that can gather information

Present the project report using appropriate media : Present the project report using appropriate media to an audience (P5). Analyze own behaviors and performance during the project and suggest areas

How much cash is to be invested by ww : On May 1, 2015, WW invest enough cash to increase his capital to a one-third interest in the partnership. How much cash is to be invested by WW?

How much daisy must contribute to the new partnership : Daisy is to invest sufficient cash to obtain 2/5 interest in the partnership. How much Daisy must contribute to the new partnership?

User Account

All Pages