Question
JOURNAL ENTRIES: A, B and C are partners with capital balances of $40000 (forty thousand dollars) each. The three partners share income and losses in
JOURNAL ENTRIES: A, B and C are partners with capital balances of $40000 (forty thousand dollars) each. The three partners share income and losses in the ratio of 1:1:1. A withdraws from the partnership. What is the entry if A is paid $100,000 in partnership cash for his equity?
| a. Dr. Cash 100,000; Cr. A, Capital 100,000 | ||
| b. Dr. A, Capital 100,000; Cr. Cash 100,000 | ||
| c. Dr. A, Capital 40,000, Dr. B, Capital 30,000, Dr. C, Capital 30,000; Cr Cash 100000 | ||
| d. Dr Cash 100000; Cr. A, Capital 40,000, Cr. B, Capital 30,000, Cr. C, Capital 30,000 | ||
| e. None of the above |
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Advanced Accounting
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
11th Edition
978-0132568968, 9780132568968
