Prepare a journal entry to account for the payment

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1. Include in the narrative: Who is retiring from the partnership? Why is he/she retiring? (Not working any more, moving away, dissatisfied with the other partners, setting up a new business etc). Is the retiring partner being paid any goodwill? How much? Or is the retiring partner leaving some equity behind? Why and how much?

3. Revalue/devalue at least one some partnership asset.

4. Calculate the equity owing to the retiring partner.

5. Prepare a journal entry to account for the payment to the retiring partner including bonus to or from the remaining partners. Include a narration.

6. What is the equity of each of the remaining partners and of the business after settlement to the retiring partner?

Reference no: EM13168897

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