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# Daggett- Lamppin- and Pendergast are partners who share profits and lo (1).docx

Daggett, Lamppin, and Pendergast are partners who share profits and losses 50%, 30%, and 20%, respectively. Their capital balances are \$150,000, \$90,000, and \$60,000, respectively.
Instructions
(a) Assume Sanford joins the partnership by investing \$140,000 for a 25% interest with bonuses to the existing partners. Prepare the journal entry to record his investment.
(b) Assume instead that Daggett leaves the partnership. Daggett is paid \$170,000 with a bonus to the retiring partner. Prepare the journal entry to record Daggett\'s withdrawal.
Solution
Particulars Debit Amount Credit Amount Cash A/C Dr Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  140,000.00 To Sanford Capital Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  110,000.00 To Daggett Capital Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  15,000.00 To Lamppin capital Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  9,000.00 To Pendergast capital Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  6,000.00 Daggett Capital Dr Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  150,000.00 Lamppin capital Dr Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  12,000.00 Pendergast capital Dr Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  8,000.00 To Cash Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  170,000.00
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Daggett, Lamppin, and Pendergast are partners who share profits and losses 50%, 30%, and 20%, respectively. Their capital balances are \$150,000, \$90,000, and \$60,000, respectively.
Instructions
(a) Assume Sanford joins the partnership by investing \$140,000 for a 25% interest with bonuses to the existing partners. Prepare the journal entry to record his investment.
(b) Assume instead that Daggett leaves the partnership. Daggett is paid \$170,000 with a bonus to the retiring partner. Prepare the journal entry to record Daggett\'s withdrawal.
Solution
Particulars Debit Amount Credit Amount Cash A/C Dr Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  140,000.00 To Sanford Capital Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  110,000.00 To Daggett Capital Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  15,000.00 To Lamppin capital Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  9,000.00 To Pendergast capital Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  6,000.00 Daggett Capital Dr Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  150,000.00 Lamppin capital Dr Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  12,000.00 Pendergast capital Dr Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  8,000.00 To Cash Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  170,000.00
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