× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
e
4
h
4
h
4
m
3
d
3
B
3
o
3
w
3
H
3
a
3
c
3
k
3
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
moeMoeMoooo moeMoeMoooo
wrote...
Posts: 322
Rep: 0 0
6 years ago
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) Peter, Capital and Chris, Capital will be credited for $11,000 each.
B) Gary, Capital will be debited for $22,000.
C) Cash is debited for $22,000.
D) Peter, Capital will be credited for $22,000.
Textbook 
Horngren's Accounting

Horngren's Accounting


Edition: 11th
Authors:
Read 220 times
1 Reply

Related Topics

Replies
wrote...
#1
6 years ago
 B
Explanation:  B) The debit entry to Gary, Capital account will close his capital account.  There are no bonuses since Gary received the book value of his capital account.
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1276 People Browsing
 246 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 327
  
 359
  
 287
Your Opinion
Who's your favorite biologist?
Votes: 608
Previous poll results: Do you trust social media networks with protecting your privacy?