Teri, Doug, and Brian are partners with capital balances of $20,000, $30,000, and $50,000 respectively. They share income in the ratio of 3:2:1. Income Summary with a debit balance of $30,000 is closed to the capital accounts. Doug withdraws from the partnership. How much cash does he get upon withdrawal?

Question

Quizplus · Accepted Answer

Doug's share of the loss is $10,000 (2/6 of $30,000). His capital balance after the loss is $20,000 ($30,000 - $10,000). Therefore, he receives $20,000 upon withdrawal.

Teri, Doug, and Brian Are Partners with Capital Balances of $20,000