Danny, Steve, and Luis are partners. They share income and losses in the ratio of 3:2:1. Luiss
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Danny, Steve, and Luis are partners. They share income and losses in the ratio of 3:2:1. Luis’s Capital account has a $120,000 balance. Danny and Steve have agreed to let Luis take $160,000 of the company’s cash when he retires from the business. What entry in journal form must be made on the partnership’s books when Luis retires, assuming that a bonus to Luis is recognized and absorbed by the remaining partners?
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