Goering, Zarcus, and Schmit are partners and share income and loss in a 2:3:5 ra

Question

Goering, Zarcus, and Schmit are partners and share income and loss in a 2:3:5 ratio. The partnership's capital balances are as follows: Goering, $58,000; Zarcus, $89,000; and Schmit, $153,000. Zarcus decides to withdraw from the partnership, and the partners agree to not have the assets revalued upon Zarcus's retirement.

(e) Zarcus is paid $14,500 in partnership cash plus equipment recorded on the partnership books at $34,500 less its accumulated depreciation of $11,600.

Explanation / Answer

Zarcus capital A/c....Dr 89000

Goeting capital A/c....Dr 58000

Schmit capital A/c....Dr 153000

To cash 157000

Zarcus capital A/c....Dr 89000

To Cash 127000

To equipment 14500

To Goeting capital A/c 23314

To Schmit capital A/c 58285

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