Question: Instructions: Answer the following problems by determining the capital balance of each partner after dissolution, providing the journal entry and showing your solution. [ WITHDRAWAL,

Instructions:

Answer the following problems by determining the capital balance of each

partner after dissolution, providing the journal entry and showing your solution.

[WITHDRAWAL, RETIREMENT, OR DEATH OF A PARTNER]

Partners A, B, and C has the following capital balances on Jan. 1, 2023:

A, capital (50%) P320,000

B, capital (30%) P192,000

C, capital (20%) P128,000

Partner A decided to retire on Sept. 1, 2023. The partnership earned profit of P800,000 from Jan. 1 to Aug 31, 2021 and the partners has the following capital withdrawals during the period: A, P40,000; B, P60,000; and C, P30,000.

Case #1: Partner B purchases Partner As interest for P700,000.

Case #2: The partnership pays Partner A P700,000 for his interest

Case #3: The partnership pays Partner A P650,000 for his capital.

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