UU,VV and WW were partners with capital balances on January 2, 2021 of P700,000, P840,000 and 620,000 respectively. Their profit and loss ratio is 3:5:2. On August 1, 2021, UU retires form the partnership. On the date of retirement, the partnership net loss is P480,000 and the partners agreed that inventories are to be revalued at P370,000 from its original cost of P340,000. The partners agreed further to pay UU P568,500 in settlement of his interest. Upon retirement of UU, which of the following will result? a, Bonus to VV is P2,500 b. Bonus from WW is P1,000 c. Goodwill of UU is P3,500 d. VVs capital after retirement of UU is P85,000 higher that WW
UU,VV and WW were partners with capital balances on January 2, 2021 of P700,000, P840,000 and 620,000 respectively. Their profit and loss ratio is 3:5:2. On August 1, 2021, UU retires form the partnership. On the date of retirement, the partnership net loss is P480,000 and the partners agreed that inventories are to be revalued at P370,000 from its original cost of P340,000. The partners agreed further to pay UU P568,500 in settlement of his interest. Upon retirement of UU, which of the following will result? a, Bonus to VV is P2,500 b. Bonus from WW is P1,000 c. Goodwill of UU is P3,500 d. VVs capital after retirement of UU is P85,000 higher that WW
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 12DQ
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Question
UU,VV and WW were partners with capital balances on January 2, 2021 of P700,000, P840,000
and 620,000 respectively. Their
that inventories are to be revalued at P370,000 from its original cost of P340,000. The partners
agreed further to pay UU P568,500 in settlement of his interest. Upon retirement of UU, which of the
following will result?
a, Bonus to VV is P2,500
b. Bonus from WW is P1,000
c.
d. VVs capital after retirement of UU is P85,000 higher that WW
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