Chapter 5
Partnerships
245
g) Independent of part a), assume that when Joe leaves, Joe is going to sell his portion of the
partnership to Jim. Jim is also going to purchase 20% of Jack’s share in the partnership.
The cash transaction will be a private matter between Jim and the two partners; however,
the capital amounts must be transferred to Jim in the partnership records. Calculate the
new capital balances for each partner
Jack
John
Joe
Jim Total
h) Prepare the journal entry to record the admission of Jim and the withdrawal of Joe from
part g).
Date
Account Title and Explanation
Debit
Credit
AP-9B (
5
)
Bryan Butryn and Jason Barfoot are in a partnership selling mobile phones. On May 1, 2016,
Jason took a mobile phone worth $800 from the business for his personal use. On December
31, 2016, Bryan withdrew $5,000 cash and Jason withdrew $3,000 cash for personal use.
Required
a) Write the journal entries to record the withdrawal transactions.
Date
Account Title and Explanation
Debit
Credit
