Question

Record the withdrawal if Benson on the assumption that she is paid $30,000 in partnership cash plus equipment recorded on the partnership books at $70,000 less its accumulated depreciation of $23,200 for her equity.

Answer 1

Answer:

(a) Dr Benson, Capital 138,000

Cr North, Capital 138,000

(b) Dr Benson, Capital 138,000

Cr Schmidt, Capital 138,000

(c) Dr Benson, Capital 138,000

Cr Cash 138,000

(d) Dr Benson, Capital 138,000

Dr Meir, Capital 28,500

Dr Lau, Capital 47,500

Cr Cash 214,000

(e) Dr Benson, Capital 138,000

Dr Accumulated depreciation-Equipment 23,200

Cr Meir, Capital 22,950

Cr Lau, Capital 38,250

Cr Equipment 70,000

Cr Cash30,000

Explanation:

Preparation of the journal entry to record Benson's withdrawal under each independent assumptions.

(a) Dr Benson, Capital 138,000

Cr North, Capital 138,000

(b) Dr Benson, Capital 138,000

Cr Schmidt, Capital 138,000

(c) Dr Benson, Capital 138,000

Cr Cash 138,000

(d) Dr Benson, Capital 138,000

Dr Meir, Capital 28,500

[(214,000-134,800)*3/8]

Dr Lau, Capital 47,500

[(214,000-138,000)*5/8]

Cr Cash 214,000

(e) Dr Benson, Capital 138,000

Dr Accumulated depreciation-Equipment 23,200

Cr Meir, Capital 22,950

[(138,000+23,200)-(70,000+30,000)*3/8]

Cr Lau, Capital 38,250

[(138,000+23,200)-(70,000+30,000)*5/8]

Cr Equipment 70,000

Cr Cash30,000