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General Accounting Discussions: Anyone able to help me with a partnership question?

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    • CommentAuthorJanabell
    • CommentTimeMar 1st 2008 edited
     
    Question 1: A, B, and C are partners with a shared income and loss ratio of 5:1:4. The balances are as follows: A, $606,000; B, $148,000; and C, $446,000. Partner A decides to withdraw from the partnership, and the partners agree not to have the assets revalued upon A's retirement. Prepare journal entries to record A's April 30 withdrawal from the partnership under each of the following assumptions:

    a) A sells her interest to D for $250,000 after B and C accept D as a partner
    b) A gives her interest to her daughter-in-law after B and C accept her as a partner
    c) A is paid $606,000 in partnership cash for her equity
    d) A is paid $350,000 in partnership cash for her equity
    e) A is paid $200,000 in partnership cash plus manufacturing equipment recorded on the partnership books at $538,000 less its accumulated depreciation of $336,000.

    Any suggestions would be helpful, thanks.

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