Debbie Perry retires from the partnership of Garland, Newlin, and Perry. She receives $85,000 of partnership assets

Question:

Debbie Perry retires from the partnership of Garland, Newlin, and Perry. She receives $85,000 of partnership assets in settlement of her capital balance of $77,000. Assuming that the income-sharing ratios are 5:3:2, respectively, how much of Perry’s bonus is debited to Newlin’s capital account?

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...