Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

King retires from the partnership of Richards , Wright , and King . The partners share profits and losses in the ratio of 4 :2:4,

King retires from the partnership of Richards , Wright , and King . The partners share profits and losses in the ratio of 4 :2:4, respectively. King 's capital balance is $ 28,000 , and he receives $ 34,000 in final settlement. What is the effect on the capital accounts of Richards and Wright ?

A.Richards' capital decreases by $ 6,000.B.Richards' capital decreases by $ 4,000.C.Richards' capital increases by $ 4,000.D.Wright's capital decreases by $ 6,000.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Financial Reporting and Analysis

Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon

6th edition

9780077632182, 78025672, 77632184, 978-0078025679

Students also viewed these Accounting questions