The following balances as at October 31, 2016 for the Partnership of Kathy, Lilia and Minda were as fol

Cash                                                     P50,000
Non-cash assets                            400,000
Liabilities                                            15,000
Kathy, Capital                                127,500
Lilia, Capital                                    82,500
Minda, Capital                               225,000

Kathy has decided to retire from the partnership on October 31. The estimated profit of October 31 is P1

Required: Compute for the Total Partners Equity after dissolution and New Capital Accounts of Remain
a. Kathy will be paid by the partnership for P170,000

b. Kathy will be paid by the partnership for P100,000

Answer:

Capital Accounts
30% 30%
Kathy Lilia
Beginning Balance P 127,500 P 82,500
Profit P 30,000 P 30,000
Updated Capital P 157,500 P 112,500

Settlement = (P 170,000) > Interest = (P 157,000)

Kathy Lilia
Updated Capital P 157,500 P 112,500
Settlement -P 170,000
Revised Capital of Partners -P 12,500 P 112,500

Bonus Method

Contributed Capital Agreed Capital

Kathy P 157,500 P 170,000
Lilia P 112,500 P 107,143
Minda P 265,000 P 257,857
Total Capital Contributed P 535,000 P 535,000

30 43%
40 57%
70
Lilia, Capital 5,357
Minda, Capital 7,143
Kathy, Capital 12,500

Kathy Lilia
Updated capital 157,500 112,500
Bonus 12,500 -5357
Total 170,000 107,143
Settlement -170,000
Revised partner's 0 107,143

Kathy, Capital 170,000

Cash

b. Kathy will be paid by the partnership for P100,000

Kathy Lilia
Updated capital 157,500 112,500
Settlement -100,000
Revised partner's 57,500 112,500

Bonus Method
CC AC
Kathy 157,500 100,000
Lilia 112,500 137,143
Minda 265,000 297,857
TCC 535,000 535,000

Kathy, Capital 57500

Lilia, Capital
Minda, Capital

Kathy Lilia
Updated Capital 157,500 112,500
Bonus -57,500 24642.86
Total 100,000 137,143
Settlement -100,000
Revised partner's 0 137,143

Kathy, Capital 100,000

Cash 100,000
and Minda were as follows:

rofit of October 31 is P100,000. Their profit and loss ratio is 3:3:4 to Kathy, Lilia and Minda, respectively.  

al Accounts of Remaining partner using  Bonus Method and Revaluation Method under the following INDEPENDE

40%
Minda Total
P225,000 P 435,000
P 40,000 P 100,000
P 265,000 P 535,000

Minda Total
P 265,000 P 535,000
-P 170,000
P 265,000 P 365,000

Reevaluation Method

Bonus
12,500 Settlement 170,000
5,357 Kathy updated capital 157,500
7,142.857 Share in adjustment 12,500
Total Agreed Capital Interest 30%
Total adjustment 41666.6666666667

Kathy 12500
Lilia 12500
Minda 16666.6666666667
 Adjustment 41666.6666666667

Minda total Contributed Capital

265,000 535,000 Kathy 157,500
-7142.857 0 Lilia 112,500
257,857 535,000 Minda 265,000
-170,000 Total Capital Contributed 535,000
257,857 365,000

170,000

Minda total
265,000 535,000
-100,000
265,000 435,000

-57,500 30 43%
24642.86 40 57%
32857.14 70
TAC

24642.86
32857.14

Minda total CC
265,000 535,000 Kathy 157,500
32857.14 0 Lilia 112,500
297,857 535,000 Minda 265,000
-100,000 TCC 535,000
297,857 435,000
espectively.  

ollowing INDEPENDENT cases:

Asset 41666.67
Kathy, Capital 12500
Lilia, Capital 12500
Minda, Capital 16,667

upward
Agreed Capital Bonus
170,000 Updated capital
125,000 Adjustment
281,667 Total
576,667 Total Agreed Capital Settlement
Revised partner's equity

Kathy, Capital

Revaluation Method Kathy

Settlement 100,000 Lilia
Kathy updated capital 157,500 Minda
Share in adjustment -57,500 Adjustment
Interest 30%
Total adjustment -191666.666666667 downward

AC
100,000 Updated Capital
55,000 Adjustment-downward
188,333 Total
343,333 TAC Settlement
Revised partner's equity

Kathy, Capital
Kathy Lilia Minda total
157,500 112,500 265,000 535,000
12500 12500 16666.67 41666.67
170,000 125,000 281,667 576,667
-170,000 -170,000
0 125,000 281,667 406,667

170,000
Cash 170,000

57500.1 Kathy, Capital 57500.1

57500.1 Lilia, Capital 57500.1
76666.8 Minda, Capital 76666.8
191667 Assets 191667

Kathy Lilia Minda total

157,500 112,500 265,000 535,000
-57500.1 -57500.1 -7666.8 -191667
100,000 55,000 188,333 343,333
-100,000 -100,000
0 55,000 188,333 243,333

100,000
Cash 100,000