MM NN and SS are partners sharing profits and losses of and respectively. The December trial balance included the following information:
On January a partner decided to retire from the partnership and by mutual agreement among the partners, the following adjustments shall be made:
Inventories amounting to P is considered obsolete and must be written off.
The fair value of the equipment is P
The tradename will not be used anymore and should be written off.
Questions:
If SS retired and received P in settlement of his total interest, how much is the adjusted capital of MM after the retirement of SS ANSWER SHOULD BE SHOW SOLUTIONS.
If SS retired and received P in settlement of his total interest, how much is the adjusted capital of NN after the retirement of SS ANSWER SHOULD BE SHOW SOLUTIONS.
