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

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

Partner

Capital Balance

Profit and Loss Ratio

B. Vuong

$72,000

50%

G. Khan

 50,000

30%

R. Dixon

 35,000

20%

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.

(b)  

Dixon is paid $47,500 from partnership assets.

(c)  

Dixon is paid $29,500 from partnership assets.