Answer to Question #310256 in Accounting for Mia

Question

The partners share profits and losses in the ratio of 4:2:4. On July 1, 2010, Diaz asked to be allowed to  withdraw from the partnership. The partners decided to close the books as of these date so as to  determine the capital interest of Diaz. Profit for 6 months ended amounted P60,000 while drawings of  Dy, David and Diaz amount to P6,000 , P8,000 and P4,000, respectively. Profits and losses are to be  shared equally after the retirement of Diaz. 

1. What are the journal entries to be prepared for the retirement of Diaz? 

3. Assumption: If Diaz decided to sale his interest to Taki for P150,000.00 what is the journal entry  for the sale of interest? 

4. Assuming the Sale of interest to the continuing partners. Diaz sold his interest to Dy and David  for P90,000; the interest being divided equally by the remaining partners. Profits and losses  after the retirement of Diaz will be divided equally, what is the journal entry for the sale of  interest?

Answer 1

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