Question

The capital accounts balances of partners in The Ministry partnership on July 1, 2019 are as...

The capital accounts balances of partners in The Ministry partnership on July 1, 2019 are as follows:

Minn, Capital (20%) P1,200,000
Ister, Capital (30%) 2,000,000
Ryan, Capital (50%) 800,000
Total P4,000,000

On July 1, 2019 Ryan withdrew from the partnership when Minn bought his capital interest for P850,000. What is the journal entry upon retirement of Ryan?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Date Particulars   Debit (in $) Credit (in $)
2019
1st July Ryan's Capital                  8,50,000
        Minn's Capital                       8,50,000

The excess amount to Minn is treated as a Bonus (or) Goodwill paid by Ryan for the partnership.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The partnership of Banks, Barlow, Buell and Buford show the following balances in their Capital accounts:...
The partnership of Banks, Barlow, Buell and Buford show the following balances in their Capital accounts: Banks, capital 150,000 Barlow, capital 150,00 buell, capital 200,000 buford, capital 200,000 total 700,000 Burnside contributes $150,000 in cash to the partners for a 20% interest in the partnership. Good will is to be recorded. The four original partners share profits/losses according the the following ratio: 20:20:30:30. A. Determine the amount of Goodwill inherent in this transaction B. Prepare the Capital Account Analysis showing...
After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances...
After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $40,800, $58,200, and $25,800, respectively. Cash, noncash assets, and liabilities total $65,700, $107,700, and $48,600, respectively. Between July 1 and July 29, the noncash assets are sold for $86,100, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1. Prepare a statement of...
After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances...
After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $55,000, $45,000, and $20,000, respectively. Cash, noncash assets, and liabilities total $56,000, $96,000, and $32,000, respectively. Between July 1 and July 29, the noncash assets are sold for $90,000, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1. Prepare a statement of...
After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances...
After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $59,920, $45,610, and $20,390, respectively. Cash, noncash assets, and liabilities total $59,380, $99,150, and $32,610, respectively. Between July 1 and July 29, the noncash assets are sold for $93,150, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1. Prepare a statement of...
The GAP Partnership has decided to liquidate at December 31, 2019. The capital and loan balances...
The GAP Partnership has decided to liquidate at December 31, 2019. The capital and loan balances of the partners at December 31, 2019 are provided below: Partner Capital Balances Loan Balances Profit/Loss Sharing % George $210,000 $40,000 account payable 50% Andrew 140,000 20,000 account receivable 20% Peter 90,000 30,000 account payable 30% · Outside liabilities are $50,000. Liquidation expenses are estimated to be $12,000. The Loss Absorption Potential (LAP) for the partners are as follows: Select one: a. George $340,000,...
The GAP Partnership has decided to liquidate at December 31, 2019. The capital and loan balances...
The GAP Partnership has decided to liquidate at December 31, 2019. The capital and loan balances of the partners at December 31, 2019 are provided below: Partner Capital Balances Loan Balances Profit/Loss Sharing % George $210,000 $40,000 account payable 50% Andrew 140,000 20,000 account receivable 20% Peter 90,000 30,000 account payable 30% · Outside liabilities are $50,000. Liquidation expenses are estimated to be $12,000. The Loss Absorption Potential (LAP) for the partners are as follows: Select one: a. George $340,000,...
After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances...
After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $41,700, $59,400, and $26,400, respectively. Cash, noncash assets, and liabilities total $67,500, $110,100, and $50,100, respectively. Between July 1 and July 29, the noncash assets are sold for $87,900, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1. Prepare a statement of...
The Prince-Robbins partnership has the following capital account balances on January 1, 2015:      Prince, Capital...
The Prince-Robbins partnership has the following capital account balances on January 1, 2015:      Prince, Capital $ 110,000   Robbins, Capital 100,000          Prince is allocated 70 percent of all profits and losses with the remaining 30 percent assigned to Robbins after interest of 8 percent is given to each partner based on beginning capital balances.       On January 2, 2015, Jeffrey invests $61,000 cash for a 20 percent interest in the partnership. This transaction is recorded by the goodwill method. After...
Keri & Nick Consulting’s partners’ equity accounts reflected the following balances on August 31, 2020:   ...
Keri & Nick Consulting’s partners’ equity accounts reflected the following balances on August 31, 2020:       Keri Lee, Capital    $    58,000       Nick Kalpakian, Capital        201,000       Lee and Kalpakian share profit/losses in a 2:3 ratio, respectively. On September 1, 2020, Liam Court is admitted to the partnership with a cash investment of $111,000. Required: Prepare the journal entry to record the admission of Liam under each of the following unrelated assumptions, where...
1. Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent...
1. Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent Henry and Tim Chou have balances of $187,500 and $135,200, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry’s interest for $43,100 and one-fourth of Chou’s interest for $29,700. Clarke contributes $45,800 cash to the partnership, for which she is to receive an ownership equity of $45,800. a1. Journalize the entry to record the admission...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT