question archive NBK Partnership is engaged in leasing activities
NBK Partnership is engaged in leasing activities
Subject:AccountingPrice: Bought3
NBK Partnership is engaged in leasing activities. In year 200B, the business has a monthly rent cash revenue of P100,000 and monthly cash operating expenses of P60,000, excluding a monthly depreciation expense of P20,000.
Assume the following additional information:
Partner's beginning capital
Na 500,000
Bu 300,000
Ko 200,000
· Total liabilities, P500,000. Na died due to car accident.
· Income tax rate is 30% of the net income.
· Due to liquidity problem, the remaining partners and the heirs of Na agreed that the final settlement of Na's capital interest will be on June 30, 200C subject to 12% interest per year.
1. Compute the adjusted partners' capital for dissolution purposes.
1. Journalize the related entries of dissolution and the payment of Na's capital balance.
