What would be the general entry to record the departure of Morsal? What would be the general entry to record the addition of Joe?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Morsal one of four partners has decided to leave the business and has agreed to take the payment
of $40,000. The partners, Macey, Morsal, Stephanie and Noemi, have capital accounts just prior
to the dissolution of the partnership in its current form of. $25,000, $36,000, $57,000, and
$43,000 respectively. The partners have shared the benefits or losses of the operations in the
following relationship: 1:1:3:2.
Two days later, a new partner Joe put money into the now existing partnership in the amount of
$45,000 for 30% of the partnership.
Required: What would be the general entry to record the departure of Morsal?
What would be the general entry to record the addition of Joe?
Transcribed Image Text:Morsal one of four partners has decided to leave the business and has agreed to take the payment of $40,000. The partners, Macey, Morsal, Stephanie and Noemi, have capital accounts just prior to the dissolution of the partnership in its current form of. $25,000, $36,000, $57,000, and $43,000 respectively. The partners have shared the benefits or losses of the operations in the following relationship: 1:1:3:2. Two days later, a new partner Joe put money into the now existing partnership in the amount of $45,000 for 30% of the partnership. Required: What would be the general entry to record the departure of Morsal? What would be the general entry to record the addition of Joe?
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