ACCTG 002A

NAME: AGUILAR, JULES D.

DATE: 3/3/2022 SECTION: BAFM11S1

Kathy, Capital                                127,500

Lilia, Capital                                    82,500
Minda, Capital                               225,000
Kathy has decided to retire from the partnership on October 31. Their profit and loss ratio is
3:3:4 to Kathy, Lilia and Minda, respectively. 

I. Table

Kathy Olan Lilia Minda TOTAL

30% 30% 40%

Original C 127 500 82 500 225 000 435 000

Adjustment - - - - -

Adjusted C - - - - -

Withdrawal (127 500) 80 000 120 000 100 000 300 000

NEW 80 000 322 500 425 000 827 500

CAPITAL
BALANCE
III. Answers to the following questions: 

1. What will be the total capital of the partnership upon Kathy's retirement?

(300 000)

2. What will be the new partnership sharing agreement?

3:3:4 or 30% 30% 40%

3. What amount of capital will be debited/ credited to Kathy upon Kathy’s retirement?
(indicate whether it is debit or credit)

Debit (127 000)

4. What amount of capital will be debited/ credited to Lilia upon Kathy’s retirement?
(indicate whether it is debit or credit)

Credit (322 500)

5. What amount of capital will be debited/ credited to Minda upon Kathy’s retirement?
(indicate whether it is debit or credit)

Credit (425 000)