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On January 5, 2023, Ron decides to leave the partnership. At the time of the withdrawal, each partner had the following balances in their capital
On January 5, 2023, Ron decides to leave the partnership. At the time of the withdrawal, each partner had the following balances in their capital accounts:
Harry, Capital - $185,000
Ron, Capital - $120,000
Hermione, Capital - $145,000
Ron agrees to accept $100,000 cash from the partnership upon his departure. According to the partnership agreement, any bonuses to the remaining partners should be divided 50:50.
Required:
1. Prepare the journal entry on January 5, 2023 to record Rons withdrawal from the partnership.
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