Required information Problem 11-8A Partner withdrawal and admission LO P3, P4 [The following information applies to the questions displayed below.] Meir, Benson, and Lau are partners and share income and loss in a 1:4:5 ratio (in percents: Meir, 10% ; Benson, 40%; and Lau, 50%). The partnership's capital balances are as follows: Meir, $36,000; Benson, $151,000; and Lau, $193,000. Benson decides to withdraw from the partnership. Problem 11-8A Part 1 1. Prepare journal entries to record Benson's February 1 withdrawal under each separate assumption: (Do not round intermediate calculations.)
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.
![Required information
Problem 11-8A Partner withdrawal and admission LO P3, P4
[The following information applies to the questions displayed below.]
Meir, Benson, and Lau are partners and share income and loss in a 1:4:5 ratio (in percents: Meir, 10%; Benson, 40%; and
Lau, 50%). The partnership's capital balances are as follows: Meir, $36,000; Benson, $151,000; and Lau, $193,000. Benson
decides to withdraw from the partnership.
Problem 11-8A Part 1
1. Prepare journal entries to record Benson's February 1 withdrawal under each separate assumption: (Do not round intermediate
calculations.)
1. Benson sells her interest to North for $160,000 after North is approved as a partner.
2. Benson gives her interest to a son-in-law, Schmidt, and Schmidt is approved as a partner.
3. Benson is paid $151,000 in partnership cash for her equity.
4. Benson is paid $189,000 in partnership cash for her equity.
5. Benson is paid $24,000 in partnership cash plus equipment that is recorded on the partnership books at $56,000 less accumulated
depreciation of $17,920.
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Journal entry worksheet
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1
2
Transaction
1
3
Note: Enter debits before credits.
Record the withdrawal if Benson sells her interest to North for $160,000 after
North is approved as a partner.
Record entry
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5
General Journal
Clear entry
Debit
Credit
View general journal
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