On March 31, Katherine Bertolla retires from the partnership of Bertolla, Callahan, and Khazeie. The partner capital

Question:

On March 31, Katherine Bertolla retires from the of Bertolla, Callahan, and Khazeie. The partner capital balances are Bertolla, $34,000; Callahan, $45,000; and Khazeie, $21,000. The profit-and-loss-sharing ratio has been 5:3:2 for Bertolla, Callahan, and Khazeie, respectively.
Requirements
1. Journalize the withdrawal of Bertolla assuming she receives $40,000 cash.
2. Journalize the withdrawal of Bertolla assuming she receives $25,000 cash.
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...