Reference no: EM132997121

Question - Partnership - a) Josh, Jake and Julianna each have a $40,000 capital balance. Josh is retiring from the business. The partners agree to revalue their main assets, freehold land, to current market value. A real estate specialist values the land at $154,000 (carrying amount $100,000). The profit-and-loss-sharing ratio is 2:3:4 for Josh, Jake and Julianna, respectively. Requirements i. Journalize the revaluation of the land on 31 July. ii. Journalize the payment of $52 000 to Josh upon his retirement the same day.

b) John, Susan and Carl each have a $200 000 capital balance. They share profits and losses as follows: 1:2:1 to John, Susan and Carl, respectively. Suppose Carl is withdrawing from the business. Journalize the withdrawal of Carl if the partnership agrees to pay Carl $200 000 cash.