A summary balance sheet for the Sissy, Jody, and Buffy partnership on December 31, 2014 is shown below. Partners Sissy, Jody, and Buffy allocate profit and loss in their respective ratios of 3:4:6. The partnership agreed to pay Buffy $360,000 for her partnership interest upon her retirement from the partnership on January 1, 2015. Any payments exceeding Buffy's capital balance are treated as a bonus from partners Sissy and Jody.
Required:
Prepare the journal entry to reflect Buffy's retirement.

Question

A summary balance sheet for the Sissy, Jody, and Buffy partnership on December 31, 2014 is shown below. Partners Sissy, Jody, and Buffy allocate profit and loss in their respective ratios of 3:4:6. The partnership agreed to pay Buffy $360,000 for her partnership interest upon her retirement from the partnership on January 1, 2015. Any payments exceeding Buffy's capital balance are treated as a bonus from partners Sissy and Jody.
  Required:
Prepare the journal entry to reflect Buffy's retirement.

Quizplus · Accepted Answer

The Answer of A summary balance sheet for the Sissy, Jody, and Buffy partnership on December 31, 2014 is shown below. Partners Sissy, Jody, and Buffy allocate profit and loss in their respective ratios of 3:4:6. The partnership agreed to pay Buffy $360,000 for her partnership interest upon her retirement from the partnership on January 1, 2015. Any payments exceeding Buffy's capital balance are treated as a bonus from partners Sissy and Jody.
  Required:
Prepare the journal entry to reflect Buffy's retirement.

A Summary Balance Sheet for the Sissy, Jody, and Buffy