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Question - On December 31, 2018, ABC Partnership's Statement of Financial Positions shows that A, B and C have capital balances of P500,000, P300,000 and P200,000 with profit or loss ratio of 1:3:6. On January 1, 2019, C retired from the partnership and received P350,000. At the time of C's retirement, an asset of the partnership is undervalued.
Required - What is the capital balance of A after the retirement of C?
a. P462,500
b. P537,500
c. P562,500
d. P525,000
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