Baker, Gregg, and Stine share profit and losses in a ratio of 4:1:5 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 Stine under the following independent circumstances:
a. The partners agree that Stine should be paid $70,000 by the partnership for his interest.
b. The partners agree that Stine should be paid $45,000 by the partnership for his interest.
c. Baker agrees to pay Stine $40,000 for one-half of his capital interest and Gregg agrees to pay Stine $40,000 for one-half of his capital interest in a personal transaction among the partners.

Question

Baker, Gregg, and Stine share profit and losses in a ratio of 4:1:5 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 Stine under the following independent circumstances: 
a. The partners agree that Stine should be paid $70,000 by the partnership for his interest.
b. The partners agree that Stine should be paid $45,000 by the partnership for his interest.
c. Baker agrees to pay Stine $40,000 for one-half of his capital interest and Gregg agrees to pay Stine $40,000 for one-half of his capital interest in a personal transaction among the partners.

Quizplus · Accepted Answer

The Answer of Baker, Gregg, and Stine share profit and losses in a ratio of 4:1:5 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 Stine under the following independent circumstances: 
a. The partners agree that Stine should be paid $70,000 by the partnership for his interest.
b. The partners agree that Stine should be paid $45,000 by the partnership for his interest.
c. Baker agrees to pay Stine $40,000 for one-half of his capital interest and Gregg agrees to pay Stine $40,000 for one-half of his capital interest in a personal transaction among the partners.

Baker, Gregg, and Stine Share Profit and Losses in a Ratio