Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. mm, nn, and ss are partners sharing profits and lo

MM, NN, and SS are partners sharing profits and losses of 40%,40%, and 20%, respectively....

60.1K

Verified Solution

Question

Accounting

MM, NN, and SS are partners sharing profits and losses of 40%,40%, and 20%, respectively. The December 31,2023 trial balance included the following information:
On January 1,2024, a partner decided to retire from the partnership and by mutual agreement among the partners, the following adjustments shall be made:
1. Inventories amounting to P40,000 is considered obsolete and must be written off.
2. The fair value of the equipment is P270,000.
3. The tradename will not be used anymore and should be written off.
Questions:
1. If SS retired and received P180,000 in settlement of his total interest, how much is the adjusted capital of MM after the retirement of SS? ANSWER SHOULD BE 330,000. SHOW SOLUTIONS.
2. If SS retired and received P180,000 in settlement of his total interest, how much is the adjusted capital of NN after the retirement of SS? ANSWER SHOULD BE 290,000. SHOW SOLUTIONS.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students