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Jensen, Zhang, and Singh had a partnership that splits profits and losses equally. Singh declared his intention to withdraw from the partnership. Partnership assets were
Jensen, Zhang, and Singh had a partnership that splits profits and losses equally. Singh declared his intention to withdraw from the partnership. Partnership assets were revalued and partner capital balances were adjusted to the following amounts:
Jensen | $90,000 |
Zhang | $70,000 |
Singh | $ 100,000 |
Due to a set of unusual legal circumstances, it was mutually agreed that the partnership would settle with Singh for a cash payment of $120,000. Please provide the journal entry for that transaction:
Calculations:
General Journal
Accounts | Debit | Credit |
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