Fall is retiring from the partnership of Fall, Ginn, and H have always shared lo
ID: 2559428 • Letter: F
Question
Fall is retiring from the partnership of Fall, Ginn, and H have always shared losses and gains in a 2:2:1 ratio; and o $8,000; Dale Ginn, $10,000; and Tom Hart, $6,000. art. The partners n the date of Fall's retirement they have the following equities in the partnership: Gary Fall Required Using a May 5 date, give entries in general journal form for the retirement of Fall under each of the following unrelated assumptions: a. Fall retires, taking $8,000 in partnership cash for his equity. b. Fall retires, taking $9,500 in partnership cash for his partnership rights. c. Fall retires, taking $7,100 in partnership cash.Explanation / Answer
General Journal:
A.
May-05
Fall's Capital Account
Dr.
8000
To Bank
Cr.
8000
(Being Amount paid to Mr. Fall)
B.
May-05
Fall's Capital Account
Dr.
8000
Goodwill Account
Dr.
1500
To Bank
Cr.
9500
(being amount of goodwill and his share of capital paid to Mr. Fall. Excess paid treated as goodwill)
C.
May-05
Fall's Capital Account
Dr.
8000
To Bank
Cr.
7100
To loan from Mr. Fall
Cr.
900
(Being amount of equity paid to Mr.Fall and remainig amount treated as Loan)
Thanks
May-05
Fall's Capital Account
Dr.
8000
To Bank
Cr.
8000
(Being Amount paid to Mr. Fall)
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