Partnership Dissolution: Retirement/ Withdrawal of a Partner

The following information was taken from the books of JKL Partnership: Capital balance Profit and Loss Ratio J, Capital 5,000,000 35% K, Capital 2,500,000 33% L, Capital 1,500,000 32% Lis to withdraw from the partnership by selling 30% of his capital interest to J at 2% more than his capital interest, and will sell 70% of his capital to K at book value. After the withdrawal of L, the remaining partners will divide their profit and loss equally. Instruction: 1. Give the entry to record the retirement of L. 2. If the remaining partners were to have equal capital interest and share in profit and loss, how much additional cash should one of the parties invest