Chapter 12, Problem P12.27APGA

To determine

Withdrawal of Partner means the partner ceases to remain the partner of the firm. The firm may continue with the remaining partners on the basis of old partnership agreement with modifications or new agreement being entered into. When the partner is retired the entries are required to pay off his equity and closes its account from Partnership book.

Requirement1:

TheJournal entries required at withdrawal of partner on selling his share to new partner.

To determine

Requirement 2:

The Journal entry for paying off the retiring partner for the amount due as per books.

To determine

Requirement 3:

The Journal entry for the payment of amount higher than the amount due ass per books to retiring partner.

To determine

Requirement 4:

The Journal entry for payment of amount lower than the balance in books to retiring partner.