question archive Julia, Alpha and Ynes are partners who share profits and losses in a 5:3:2 ratios and on January 1 of the current year, have capital balances of P90,000, P160,000 and P200,000, respectively
Julia, Alpha and Ynes are partners who share profits and losses in a 5:3:2 ratios and on January 1 of the current year, have capital balances of P90,000, P160,000 and P200,000, respectively
Subject:AccountingPrice:2.86 Bought9
Julia, Alpha and Ynes are partners who share profits and losses in a 5:3:2 ratios and on January 1 of the current year, have capital balances of P90,000, P160,000 and P200,000, respectively. Ynes withdrew from the partnership on July 1 of the current year and the partners agreed that, as of this date, certain inventory items would have to be revalued at P70,000 from their recorded cost of P50,000. For the 6-month period ending June 30 of the current year, the partnership realized a net income of P130,000. The partners decided that Ynes should be paid P245,000 for her interest. The payment to Ynes included bonus from remaining partners amounting to?
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
The amount of Bonus from Remaining Partners to be paid to Ynes is P15,000. Note that to arrive at the Capital Balances before withdrawal, We need to adjust it based on the related transactions (1) Increase in the Value of Inventory (2) Net Income. The amounts are all to be divided based on the Partner's P&L Sharing Ratio (5:3:2).
Once we have arrived at the Capital Balance Before Withdrawal. Compare the Capital of Ynes to the amount that the partnership has willing to pay for her interest. the difference is the Bonus to be paid by remaining partner. In this case, the Capital Balance of Ynes is P230,000 and the partnership offers to pay her P245,000 as interest. The difference is P15,000 which is the bonus to be allocated to the remaining partners depending on the agreed revised P&L Sharing ratio.
Please see the attached file for the complete solution
