Peter, James, and John are partners sharing profits and losses of 30%, 20%, and 50%, respectively....

 

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Peter, James, and John are partners sharing profits and losses of 30%, 20%, and 50%, respectively. The December 31, 2022 trial balance included the following information: Cash P 350,000 Accounts Payable P 150,000 45,000 Notes Payable 75,000 400,000 Peter, Capital 350,000 355,000 James, Capital 450,000 450,000 John, Capital 575,000 TOTAL P1,600,000 TOTAL P1,600,000 John decided to withdraw from the partnership on January 2, 2023. By mutual agreement, the following adjustments are to be made before the withdrawal of John. Accounts Receivable Inventory Furniture and Fixtures Equipment-net 1. a) The Furniture and Fixture was under depreciated by P50,000. 2. b) Inventories worth P70,000 have been damaged by the typhoon and are considered obsolete. If John received P578,000 from the partnership, how much is the capital balance of Peter after the withdrawal of John? Peter, James, and John are partners sharing profits and losses of 30%, 20%, and 50%, respectively. The December 31, 2022 trial balance included the following information: Cash P 350,000 Accounts Payable P 150,000 45,000 Notes Payable 75,000 400,000 Peter, Capital 350,000 355,000 James, Capital 450,000 450,000 John, Capital 575,000 TOTAL P1,600,000 TOTAL P1,600,000 John decided to withdraw from the partnership on January 2, 2023. By mutual agreement, the following adjustments are to be made before the withdrawal of John. Accounts Receivable Inventory Furniture and Fixtures Equipment-net 1. a) The Furniture and Fixture was under depreciated by P50,000. 2. b) Inventories worth P70,000 have been damaged by the typhoon and are considered obsolete. If John received P578,000 from the partnership, how much is the capital balance of Peter after the withdrawal of John?

Answer rating: 100% (QA)

To calculate Peters capital balance after the withdrawal of John we need to adjust the partnerships assets and liabilities and calculate the total capital balance before the withdrawal Adjustment 1 Fu... View the full answer