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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Business

Halle Duffy

25 August, 21:16

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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Tianna Lozano · 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