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|
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?
|Date||Particulars||Debit (in $)||Credit (in $)|
|1st July||Ryan's Capital||8,50,000|
The excess amount to Minn is treated as a Bonus (or) Goodwill paid by Ryan for the partnership.
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