A summary balance sheet for the DI, KANYA, MAHAL Partnership on December 31, 2021 is shown...
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A summary balance sheet for the DI, KANYA, MAHAL Partnership on December 31, 2021 is shown below. Partners DI, KANYA, MAHAL allocate profit and loss in their respective ratios of 3:3:4. The partnership agreed to pay partner MAHAL P280,000 for his partnership interest upon his retirement from the partnership on January 1, 2021. Assets Cash P 400,000 Inventory 300,000 Land 500,000 Building-net 800,000 Total assets P 2,000,000 Equities DI, capital P 1,000,000 KANYA, capital 750,000 MAHAL, capital 250,000 Total equities P 2,000,000 Required: Prepare the journal entry to reflect MAHAL's retirement from the partnership. USE BONUS METHOD A summary balance sheet for the DI, KANYA, MAHAL Partnership on December 31, 2021 is shown below. Partners DI, KANYA, MAHAL allocate profit and loss in their respective ratios of 3:3:4. The partnership agreed to pay partner MAHAL P280,000 for his partnership interest upon his retirement from the partnership on January 1, 2021. Assets Cash P 400,000 Inventory 300,000 Land 500,000 Building-net 800,000 Total assets P 2,000,000 Equities DI, capital P 1,000,000 KANYA, capital 750,000 MAHAL, capital 250,000 Total equities P 2,000,000 Required: Prepare the journal entry to reflect MAHAL's retirement from the partnership. USE BONUS METHOD
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The bonus method is used to grant a new partner additional capital ... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-1934319307
2nd edition
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III
Posted Date:
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