Michael, Angel, and Lou are partners and according to their articles of copartnership share profit and loss in the ratio of 2/3/5.The partners' capital balances are as follows:
Michael $100,000, Angel $125,000, and Lou $150,000.Angel decided to with draw from the partnership and the partners agree not to have the assets revalued.Assuming Angel sells his interest to DaVinny for $200,000 after both other partners approve of the admission, what likely is the journal entry:

Question

Michael, Angel, and Lou are partners and according to their articles of copartnership share profit and loss in the ratio of 2/3/5.The partners' capital balances are as follows: ​
Michael $100,000, Angel $125,000, and Lou $150,000.Angel decided to with draw from the partnership and the partners agree not to have the assets revalued.Assuming Angel sells his interest to DaVinny for $200,000 after both other partners approve of the admission, what likely is the journal entry:​
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Quizplus · Accepted Answer

Angel's capital account is debited for the amount of his capital balance ($125,000), and DaVinny's capital account is credited for the same amount, as DaVinny is purchasing Angel's interest in the partnership. The sale price of $200,000 is a personal transaction between Angel and DaVinny and does not affect the partnership's books.

Michael, Angel, and Lou Are Partners and According to Their