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