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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Principles of Accounting

ISBN: 978-1439037744

11th Edition

Authors: Needles, Powers, crosson

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