Gary,Peter and Chris Own a Firm as Partners

question 7

Multiple Choice

Gary,Peter and Chris own a firm as partners.Gary has a capital balance of $21,000;Peter a capital balance of $38,000;and Chris has a capital balance of $33,000.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 $21,000?

• A)Peter,capital will be credited for $21,000.
• B)Cash is debited for $21,000.
• C)Peter,capital and Chris,capital will be credited for $10,500 each.
• D)Gary,capital will be debited for $21,000.

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Definitions:

Incentive

A motivation or reward offered to encourage specific behaviors or actions, often used in business, economics, and psychology.

Accommodation

The provision of a place to stay or the process of adjusting something to match a certain need.

War

A state of armed conflict between different countries or different groups within a country.

Credit Card

A payment card issued to users as a method of payment allowing the cardholder to pay for goods and services based on the holder's promise to pay for them.