What is the total capital of md after retirement of vl

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Problem - On December 30, 20X1, the statement of financial position of DG Co. has the following balances: Total assets P2,250,000; VL loan P125,000; VL capital P518,750; MD capital P481,250; and LV capital P1, 125,000. The partners share profits and losses in the ratio of 25% to VL, 25% to MD, and 50% to LV. It was agreed among the partners that VL retires from the partnership and the partnership assets be adjusted to their fair value of P2,550,000 as of December 31,20X2. The partnership also suffered net loss of P750,000. The partnership would pay VL the amount of P542,500 cash for his total interest in the partnership. What is the total capital of MD after retirement of VL?

Reference no: EM132938218

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