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

Instructions 

Journalize the withdrawal of Dixon under each of the following independent assumptions: 

a. Khan agrees to purchase Dixon’s ownership interest for $45,000 cash. This is a personal transaction between the partners. 

b. Dixon is paid $47,500 from partnership assets. 

c. Dixon is paid $29,500 from partnership assets.

Assume that, instead of any of the above options, Dixon withdraws from the partnership by selling her interest to S. Meyers. Do Vuong and Khan need to approve it? Why or why not?

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Partner B. Vuong G. Khan R. Dixon Capital Balance $72,000 $50,000 $35,000 Profit and Loss Ratio 50% 30% 20%