Chapter 5
Partnerships
233
AP-12A (
7
)
Thomas, Helen, and Ahmed formed a partnership in 2016 to make furniture for commercial
projects. On January 1, 2017, the partners had the following capital account balances:
Thomas—$25,000, Helen—$35,000 and Ahmed—$50,000. On January 1, 2017 Helen decided
to withdraw from the partnership. Helen sold 40% of her portion of capital to Thomas and the
remaining 60% to Ahmed. Prepare a journal entry to record the transaction and calculate the
balance of the partners’ capital accounts after the withdrawal of Helen.
Date
Account Title and Explanation
Debit
Credit
Thomas
Helen Ahmed
Total
Capital balance before withdrawal
Withdrawal of Helen
Capital balance after withdrawal
