Teri, Doug, and Brian are partners with capital balances of $36,300, $29,300, and $56,100, respectively. They share income and losses in the ratio of 3:2:1. Revenue accounts for the period total $304,200. Expense accounts for the period total $336,000. The revenue and expense accounts are closed to the capital accounts. Doug withdraws from the partnership. How much cash does he receive upon withdrawal

Question

Lola Hartman

Business

19 August, 00:00

Teri, Doug, and Brian are partners with capital balances of $36,300, $29,300, and $56,100, respectively. They share income and losses in the ratio of 3:2:1. Revenue accounts for the period total $304,200. Expense accounts for the period total $336,000. The revenue and expense accounts are closed to the capital accounts. Doug withdraws from the partnership. How much cash does he receive upon withdrawal

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Answers (1)

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Clyde · Answer 1

Answer: $18,700

Explanation:

From the question, we are told that the revenue accounts for the period was $304,200 and the expense accounts for the period was $336,000. This means that there was a loss of:

= $336,000 - $304,200

= $31,800

They share income and losses in the ratio of 3:2:1. This means that Doug's share will be 2/6.

Since a loss of $31,800 was made, the loss will be:

= 2/6 * $31,800

= 1/3 * $31,800

= $10,600

Teri, Doug, and Brian are partners with capital balances of $36,300, $29,300, and $56,100, respectively. Therefore, when Doug withdraws from the partnership, he will receive a cash of:

= $29,300 - $10,600

= $18,700