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Gary, Peter, and Chris own a firm as partners. Gary has a capital balance ofâ $22,000; Peter a capital balance ofâ $42,000; and Chris has a capital balance ofâ $32,000. As per the partnershipâ agreement, Gary gets a profit share ofâ 2/9; Peter hasâ 4/9; and Chris hasâ 3/9. Which of the following isâ true, if Gary withdraws from the partnership by receivingâ $22,000?
A.â Gary, Capital will be debited forâ $22,000.
B. Cash is debited forâ $22,000.
C.â Peter, Capital andâ Chris, Capital will be credited forâ$11,000 each.
D. âPeter, Capital will be credited forâ $22,000.
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Gary, Peter, and Chris own a firm as partners. Gary has a capital balance ofâ $22,000; Peter a capit...
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