Ronald,Ross and Carol Opened a Partnership Firm

question 48

Multiple Choice

Ronald,Ross and Carol opened a partnership firm.Ronald has a capital of $73,000;Ross has a capital of $117,000;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)Ross,capital is credited for $5500.
• B)Carol,capital is debited for $5500.
• C)Ross,capital is debited for $11,000.
• D)Cash is credited for $11,000.

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Definitions:

Government Purchases

Expenditures by government entities for goods and services that directly consume economic output.

Real GDP

Refers to the total economic output of a country, adjusted for price changes or inflation, measured in constant prices.

Government Purchases

These are expenditures made by government entities for goods and services that directly satisfy public needs or are used to produce other goods and services for public consumption.

Per Capita GDP

The measure of a country's economic output per person, calculated by dividing the Gross Domestic Product by the total population.