How is credited to notes payable result of marlys retirement


Problem

Nemo, Dory and Marly are partners with capital credit balances as of December 31, 2016 of P300,000; P300,000; and P200,000, respectively. Marly is allowed to withdraw and it was agreed that he is to take certain furniture items at their second hand value of P15,000, plus a promissory note for the balance of his interests. The furniture items are carried on the books as fully depreciated; brand new, however, they would cost P18,000. Profits and losses are shared equally How much is credited to Notes Payable as a result of Marly's retirement?

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Financial Accounting: How is credited to notes payable result of marlys retirement
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