The statement of financial position for the partnership of Marlin, Martin and Marvin as of June 30, 20xx with their respective profit and loss ratio were as follows: Assets, at cost P4,000,000 100,000 700,000 Loan Payable to Marlin Marlin, Capital Martin, Capital Marvin, Capital (20%) (30%) (50%) 1,200,000 2,000,000 P4,000,000 Marlin had decided to retire from the partnership. The partners agreed that the assets are to be adjusted to their fair value of P4,300,000 at June 30, 20xx. It was agreed that the partnership would pay Marlin P1,000,000 cash for his interest in the partnership including the loan.
The statement of financial position for the partnership of Marlin, Martin and Marvin as of June 30, 20xx with their respective profit and loss ratio were as follows: Assets, at cost P4,000,000 100,000 700,000 Loan Payable to Marlin Marlin, Capital Martin, Capital Marvin, Capital (20%) (30%) (50%) 1,200,000 2,000,000 P4,000,000 Marlin had decided to retire from the partnership. The partners agreed that the assets are to be adjusted to their fair value of P4,300,000 at June 30, 20xx. It was agreed that the partnership would pay Marlin P1,000,000 cash for his interest in the partnership including the loan.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Our topic is about
- What is the total capital balance after retirement of Marlin?
- What is the capital balance of Marvin after retirement of Marlin?
- What is the capital balance of Martin after retirement of Marlin?
Thank you!!!
Transcribed Image Text:he statement of financial position for the partnership of Marlin, Martin and Marvin
as of June 30, 20xx with their respective profit and loss ratio were as follows:
Assets, at cost
P4,000,000
5.
100,000
Loan Payable to Marlin
Marlin, Capital
Martin, Capital
Marvin, Capital
700,000
(20%)
(30%)
(50%)
1,200,000
2.000,000 P4,000,000
Marlin had decided to retire from the partnership. The partners agreed that the assets
are to be adjusted to their fair value of P4,300,000 at June 30, 20xx. It was agreed
that the partnership would pay Marlin P1,000,000 cash for his interest in the
partnership including the loan.
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