Question:
The following balances as at October 31, 2016 for the Partnership of Kathy, Lilia and Minda
were as follows:
Cash P50,000
Non-cash assets 400,000
Liabilities 15,000
Kathy, Capital 127,500
Lilia, Capital 82,500
Minda, Capital 225,000
Kathy has decided to retire from the partnership on October 31. The estimated profit of
October 31 is P100,000. Their profit and loss ratio is 3:3:4 to Kathy, Lilia and Minda,
respectively.
Required: Compute for the Total Partners Equity after dissolution and New Capital Accounts
of Remaining partner using Bonus Method and Revaluation Method under the following
INDEPENDENT cases:
a. Kathy will be paid by the partnership for P170,000
b. Kathy will be paid by the partnership for P100,000
Answer:
40% 30% 30%
Minda Lilia Kathy Total
Beginning Balances 225,000 82,500 127,500 435,000
Profit Distribution 40,000 30,000 30,000 100,000
Updated Capital 265,000 112,500 157,500 535,000
The following balances as at October 31, 2016 for the Partnership of Kathy, Lilia and Minda
were as follows:
Cash P50,000
Non-cash assets 400,000
Liabilities 15,000
Kathy, Capital 127,500
Lilia, Capital 82,500
Minda, Capital 225,000
Kathy has decided to retire from the partnership on October 31. The estimated profit of
October 31 is P100,000. Their profit and loss ratio is 3:3:4 to Kathy, Lilia and Minda,
respectively.
Required: Compute for the Total Partners Equity after dissolution and New Capital Accounts
of Remaining partner using Bonus Method and Revaluation Method under the following
INDEPENDENT cases:
a. Kathy will be paid by the partnership for P170,000
b. Kathy will be paid by the partnership for P100,000
Answer:
40% 30% 30%
Minda Lilia Kathy Total
Beginning Balances 225,000 82,500 127,500 435,000
Profit Distribution 40,000 30,000 30,000 100,000
Updated Capital 265,000 112,500 157,500 535,000
