On December 31, the capital balances and profit and loss ratios in the VKD Company are as

Question:

On December 31, the capital balances and profit and loss ratios in the VKD Company are as follows:
Partner Capital Balance Profit and Loss Ratio
B. Vuong...................$75,000..........................................50%
G. Khan......................50,000...........................................30%
R. Dixon.....................37,500...........................................20%
Instructions
Journalize the withdrawal of Dixon under each of the following independent assumptions:
(a) Each of the continuing partners agrees to pay $22,500 cash from personal funds to purchase Dixon's ownership equity. Each partner receives 50% of Dixon's equity.
(b) Khan agrees to purchase Dixon's ownership interest for $45,000 cash.
(c) Dixon is paid $47,500 from assets.
(d) Dixon is paid $29,500 from assets.
Taking It Further
Assume that, instead of any of the above options, Dixon withdraws from the selling her interest to S. Meyers. Do Vuong and Khan need to approve it? Why or why not?
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...