A summary balance sheet for the Uma,Van,and Walter partnership on December 31,2011 is shown below.Partners Uma,Van,and Walter allocate profit and loss in their respective ratios of 4:5:7.The partnership agreed to pay Walter $227,500 for his partnership interest upon his retirement from the partnership on January 1,2012.Any payments exceeding Walter's capital balance are treated as a bonus from partners Uma and Van.
Required:
Prepare the journal entry to reflect Walter's retirement.

Question

A summary balance sheet for the Uma,Van,and Walter partnership on December 31,2011 is shown below.Partners Uma,Van,and Walter allocate profit and loss in their respective ratios of 4:5:7.The partnership agreed to pay Walter $227,500 for his partnership interest upon his retirement from the partnership on January 1,2012.Any payments exceeding Walter's capital balance are treated as a bonus from partners Uma and Van.
  Required:
Prepare the journal entry to reflect Walter's retirement.

Quizplus · Accepted Answer

The Answer of A summary balance sheet for the Uma,Van,and Walter partnership on December 31,2011 is shown below.Partners Uma,Van,and Walter allocate profit and loss in their respective ratios of 4:5:7.The partnership agreed to pay Walter $227,500 for his partnership interest upon his retirement from the partnership on January 1,2012.Any payments exceeding Walter's capital balance are treated as a bonus from partners Uma and Van.
  Required:
Prepare the journal entry to reflect Walter's retirement.

A Summary Balance Sheet for the Uma,Van,and Walter Partnership on December