fx Textbook Ref A Textbook LO 15.4 The partnership of Arun, Margo, and Tammy has done well. The three partners have shared profits and losses in a 1:1:2 ratio, with capital balances of $75,000 each. Tammy wants to retire and withdraw. Prepare a schedule showing how the cost should be divided if Margo and Arun decide to pay Tammy $100,000 for retirement of her capital account and the new agreement will share profits and losses 50:50 Pre-withdrawl ratio Pre-withdrawl capital balances B Payment to retiring partner Retiring partner's capital balance Excess payment to retiring partner Date Account Title Dec. 31 To record retirement of a partner Cash Arun, Capital Margo, Capital Tammy, Capital C Arun Debit D Margo Credit E Tammy F Total
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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