Answer to Question #103860 in Accounting for jenelle

Question

3) Preparethejournalentriesforthefollowingtransactions(2pointseach):
a) After several years of the partnership’s growing success, at which time the capital balances of Yissachar and Zevulun were $500,000
and $300,000, respectively, the partnership decided to admit a third partner, Binyamin , hoping that his skills and expertise would help expand the partnership’s growth tremendously. Binyamin invested $100,000 cash into the partnership for a one-sixth ownership. Assume equal sharing of profit and loss among the partners.
b) Soon after, Yissachar sold his interest in the partnership to Lavan. Lavan paid Yissachar $500,000.
c) Due to Lavan’s crooked handling of partnership assets, the partnership decided to force him out. His capital balance was still
unchanged. The partnership paid him $425,000

Answer 1

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