a ex 193 brislin humphreys and watkins share income and losses in a ratio of 3 2 5 r 4325028

aEx. 193

Brislin, Humphreys, and Watkins share income and losses in a ratio of 3:2:5, respectively. The capital account balances of the partners are as follows:

Brislin Capital$600,000

Humphreys, Capital360,000

Watkins, Capital260,000

aEx. 193(Cont.)

Instructions

Prepare the journal entry on the books of the partnership to record the withdrawal of Watkins under the following independent circumstances:

1.The partners agree that Watkins should be paid $280,000 by the partnership for his interest.

2.The partners agree that Watkins should be paid $220,000 by the partnership for his interest.

3.Brislin agrees to pay Watkins $180,000 for one-half of his capital interest and Heller agrees to pay Watkins $180,000 for one-half of his capital interest in a personal transaction among the partners.

 

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