Gary, Peter, and Chris Are Partners

question 59

Multiple Choice

Gary, Peter, and Chris are partners. Their capital balances are, $25,000; $40,000; and $31,000, respectively. As per the partnership agreement, Gary gets a profit share of 2/9; Peter has 4/9; and Chris has 3/9. Gary withdraws from the partnership by receiving $25,000. What will be the impact of this transaction on the journal entries?

• A)Cash will be debited for $25,000.
• B)Peter, Capital will be debited for $1,714.
• C)Chris, Capital will be credited for $1,714.
• D)Gary, Capital will be debited for $25,000.

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