
Concept Introduction:
Retirement of Partner: Retirement of Partner when partner retire from firm’s business. He/she ceases to be partner of Firm.
Withdrawal of a Partner: When partner retires from firm then he/she is entitled to withdraw the assets of firm which is equal, less than or more than his/her interest in firm.
Rule of Debit and Credit
a. Debit What comes in and Credit What goes out
b. Debit is the receiver and Credit is the giver.
c. All gains and income are credit and all losses and expenses are debit.
Requirement 1
To Prepare: Journal Entries for Withdrawal’s made by Preti of $240,000
Requirement 2
To Prepare: Journal Entries for Withdrawal’s made by Pretiof $210,000

Want to see the full answer?
Check out a sample textbook solution
Chapter 12 Solutions
ACCOUNTING PRINCIPLES 222 5/16 >C<
- General accountingarrow_forwardFinancial accounting questionarrow_forwardOn November 30, Sullivan Enterprises had Accounts Receivable of $145,600. During the month of December, the company received total payments of $175,000 from credit customers. The Accounts Receivable on December 31 was $98,200. What was the number of credit sales during December?arrow_forward
- Paterson Manufacturing uses both standards and budgets. For the year, estimated production of Product Z is 620,000 units. The total estimated cost for materials and labor are $1,512,000 and $1,984,000, respectively. Compute the estimates for: (a) a standard cost per unit (b) a budgeted cost for total production (Round standard costs to 2 decimal places, e.g., $1.25.)arrow_forwardQuestion: Gujri Place Clock Shop sold a grandfather clock for $2,250 subject to a 9% sales tax. The entry in the general journal will include a credit to Sales for a) $2,250.00 b) $2,092.50 c) $2,452.50. choose the correct optionarrow_forwardPlease help mearrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





