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, $78,000; Zarcus, $119,000; and Schmit, $203,000. Zarcus decides to withdraw from the partnership, and the partners agree to not have the assets revalued upon Zarcus's retirement.

Prepare journal entries to record Zarcus's February 1 withdrawal from the partnership under each of the following separate assumptions.

Zarcus is paid $157,000 in partnership cash for her equity.

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 119000 Goeting capital A/c....Dr 10857 Schmit capital A/c....Dr 27143 To cash 157000 Zarcus capital A/c....Dr 119000 To Cash 14500 To equipment 22900 To Goeting capital A/c 23314 To Schmit capital A/c 58285 Happy to help

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