Simonsen, Paulson, and Richardson are partners in a firm with the following capital account balances: The profit-and-loss-sharing ratio among Simonsen, Paulson, and Richardson is 1:3:2, in the order given. Paulson is retiring from the partnership on December 31, 2013. Paulson's capital account is settled at book value. Journalize the cash payment to Paulson upon retirement.

Question

Simonsen, Paulson, and Richardson are partners in a firm with the following capital account balances:  The profit-and-loss-sharing ratio among Simonsen, Paulson, and Richardson is 1:3:2, in the order given. Paulson is retiring from the partnership on December 31, 2013. Paulson's capital account is settled at book value. Journalize the cash payment to Paulson upon retirement.

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The Answer of Simonsen, Paulson, and Richardson are partners in a firm with the following capital account balances:  The profit-and-loss-sharing ratio among Simonsen, Paulson, and Richardson is 1:3:2, in the order given. Paulson is retiring from the partnership on December 31, 2013. Paulson's capital account is settled at book value. Journalize the cash payment to Paulson upon retirement.

Simonsen, Paulson, and Richardson Are Partners in a Firm with the Following