Gary,Peter,and Chris Own a Firm as Partners

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.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free