Brislin Humphreys and Watkins share income and losses in a ratio of 3:2:5 respectively. The capital account balances of the partners are as follows:
Instructions
Prepare the journal entry on the books of the partnership to record the withdrawal of Watkins under the following independent circumstances:
1. The partners agree that Watkins should be paid $280000 by the partnership for his interest.
2. The partners agree that Watkins should be paid $220000 by the partnership for his interest.
3. Brislin agrees to pay Watkins $180000 for one-half of his capital interest and Heller agrees to pay Watkins $180000 for one-half of his capital interest in a personal transaction among the partners.

Question

Quizplus · Accepted Answer

The Answer of Brislin Humphreys and Watkins share income and losses in a ratio of 3:2:5 respectively. The capital account balances of the partners are as follows:
Instructions
Prepare the journal entry on the books of the partnership to record the withdrawal of Watkins under the following independent circumstances:
1. The partners agree that Watkins should be paid $280000 by the partnership for his interest.
2. The partners agree that Watkins should be paid $220000 by the partnership for his interest.
3. Brislin agrees to pay Watkins $180000 for one-half of his capital interest and Heller agrees to pay Watkins $180000 for one-half of his capital interest in a personal transaction among the partners.

Brislin Humphreys and Watkins Share Income and Losses in a Ratio