Ronald, Ross, and Carol Opened a Partnership Firm

Ronald, Ross, and Carol opened a partnership firm. Ronald has a capital of $75,000; Ross has a capital of $120,000; and Carol has a capital of $93,000. Ronald decided to withdraw from the partnership and received $84,000. Which of the following will be included in the journal entry to record this? (Assume an equal profit-loss sharing between the existing partners)

A) Cash is credited for $9,000.
B) Ross, Capital is credited for $4,500.
C) Carol, Capital is debited for $4,500.
D) Ross, Capital is debited for $9,000.

Correct Answer:

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