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Home Q & A Board Other Fields Homework Help Business Accounting
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@Gabrielle @Gabrielle
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5 years ago
Mary, Ann, and Beth are partners. Their capital balances are, $23,000; $41,000; and $30,000, respectively. As per the partnership agreement, Mary receives a profit share of 2/9; Ann has 4/9; and Beth has 3/9. Beth withdraws from the partnership by receiving $23,000. What will be the impact of this transaction on the journal entries?
A) Cash will be debited for $30,000.
B) Mary, Capital will be debited for $7,000.
C) Ann, Capital will be credited for $7,000.
D) Beth, Capital will be debited for $30,000.
Textbook 
Horngren's Accounting

Horngren's Accounting


Edition: 11th
Authors:
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wrote...
#1
5 years ago
 D
Explanation:  D) The debit entry to Beth, Capital account will close her capital account.  There is a bonus of 7,000 to the remaining partners since Beth received the book value of her capital account, but the 7,000 will be divided according to their profit share.
@Gabrielle Author
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#2
5 years ago
TY!
wrote...
#3
5 years ago
You're welcome
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