Teri, Doug, and Brian Are Partners with Capital Balances of $20,000

question 148

Multiple Choice

Teri, Doug, and Brian are partners with capital balances of $20,000, $30,000, and $50,000, respectively. They share income and losses in the ratio of 3:2:1. Revenue accounts for the period total $350,000. Expense accounts for the period total $380,000. The revenue and expense accounts are closed to the capital accounts. Doug withdraws from the partnership. How much cash does he receive upon withdrawal?

• A) $30,000
• B) $20,000
• C) $40,000
• D) $24,000

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Availability Heuristic

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