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Partner A Partner B Partner C Capital Balances $50,000 $60,000 $70,000 Profit and Loss Percent 60% 30% 10% Percent interest in Capital 33.3% 33.3% 33.3%

Partner A

Partner B

Partner C

Capital Balances

$50,000

$60,000

$70,000

Profit and Loss Percent

60%

30%

10%

Percent interest in

Capital

33.3%

33.3%

33.3%

Assume A is selling her interest to remaining partners for $56,000. The correct entry would:

  1. Debit all partners' capital accounts
  2. Credit all partners' capital account
  3. Debit Partners A capital for $56,000 and credit remaining partners' capital
  4. Debit Partner A capital for $50,000

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