Chapter 12, Problem 12E

To determine

Concept Introduction:

Retirement of a partner:

A partner may retire from the partnership and he shall be paid for his capital in the partnership. At the time of retirement of a partner following procedures are followed:

1. New profit sharing ratio is calculated for remaining partners
2. Assets are liabilities are revalued
3. The amount payable to the retiring partner is calculated
4. The amount is paid to the retiring partner in different ways

To prepare:

the journal entries for the retreatment of Tulip