× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
moeMoeMoooo moeMoeMoooo
wrote...
Posts: 322
Rep: 0 0
5 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 206 times
1 Reply

Related Topics

Replies
wrote...
#1
5 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
  1292 People Browsing
 115 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 188
  
 428
  
 273
Your Opinion
Which of the following is the best resource to supplement your studies:
Votes: 249
Previous poll results: Which industry do you think artificial intelligence (AI) will impact the most?