Question
Hillary, Bruce, and Cindy own a partnership firm. Hillary has an ownership interest of $24,000; Bruce has an ownership interest of $41,000; and Cindy
Hillary, Bruce, and Cindy own a partnership firm. Hillary has an ownership interest of $24,000; Bruce has an ownership interest of $41,000; and Cindy has an ownership interest of $30,000. In the process of liquidation, the partnership sells non-cash assets and registers a gain of $30,000. The profit-loss sharing agreement is 1/6 to Hillary; 2/6 to Bruce; and 3/6 to Cindy. Which of the following is true when a journal entry for the allocation of gain is recorded? O Cindy, Capital is credited for $10,000. O Hillary, Capital is debited for $10,000. O Cindy, Capital is credited for $15,000. O Hillary, Capital is credited for $10,000.
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