Nabiha, Abdullah, and Samina are partners with capital account balances of 50,000, 75,000, and 25,000, respectively. Income and losses are divided in a 4:4:2 ratio. When Samina decided to withdraw, the partnership revalued its assets from 225,000 to 250,000, which represented an increase in the value of inventory of 5,000 and an increase in the value of land of 20,000. Samina was then given 15,000 cash and a note for 40,000 for his withdrawal from the partnership. Required: A. Prepare the journal entry to record the revaluation of the partnership’s assets.

Nabiha, Abdullah, and Samina are partners with capital account balances of 50,000, 75,000, and 25,000, respectively. Income and losses are divided in a 4:4:2 ratio. When Samina decided to withdraw, the partnership revalued its assets from 225,000 to 250,000, which represented an increase in the value of inventory of 5,000 and an increase in the value of land of 20,000. Samina was then given 15,000 cash and a note for 40,000 for his withdrawal from the partnership. Required: A. Prepare the journal entry to record the revaluation of the partnership’s assets.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations

Section: Chapter Questions

Problem 18CE

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