Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gary, Peter, and Chris own a firm as partners. Gary has a capital balance of $22,000; Peter a capital balance of $42,000; and Chris has

Gary, Peter, and Chris own a firm as partners. Gary has a capital balance of $22,000; Peter a capital balance of $42,000; and Chris has a capital balance of $32,000. As per the partnership agreement, Gary gets a profit share of 2/9; Peter has 4/9; and Chris has 3/9. Which of the following is true, if Gary withdraws from the partnership by receiving $22,000?

A.Gary, Capital will be debited for $22,000.

B.Cash is debited for $22,000.

C.Peter, Capital and Chris, Capital will be credited for $11,000 each.

D.Peter, Capital will be credited for $22,000.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Quality Audit A Management Evaluation Tool

Authors: Charles A. Mills

1st Edition

0070424284, 978-0070424289

More Books

Students also viewed these Accounting questions

Question

Distinguish between vesting and non-vesting conditions.

Answered: 1 week ago