Ola Jadulco, Edgar Mabad, and Diona Angnag are partners who shared profit and losses of 30%, 50%,
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Question:
Ola Jadulco, Edgar Mabad, and Diona Angnag are partners who shared profit and losses of 30%, 50%, and 20% respectively. Edgar decides to withdraw from the partnership. Their respective capital account balances after the partnership’s books have been adjusted as follows: Ola, P60,000; Edgar, P85,000; and Diona, P55,000.
1. Prepare a journal entry to record the withdrawal of Edgar from the partnership under the following assumptions:
a. Diona buys his share for P90,000.
b. Ola buys ¾ of his share and ¼ by Diona.
c. Nato, an outsider buys his interest for P80,000.
2. Determine the capitalization of the partnership after Edgars’s withdrawal in each of the given assumptions.
Expert Answer:
1 a Journal Entry Date Description Debit Credit 1 Cash 90000 Diona Capital Account 90000 To record c... View the full answer
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