Capital 1/1/2020 Profit/loss% Withdrawals in 2020 Alice 39285 30% 15,000 Bob 26528 25% 45,000 Carol 41594 45% 30,000 For 2020, Bob earned a salary of $42117. Each partner receives interest of 8% of the beginning capital balance for the year. Total income of the partnership in 2020 was $120266. How much income should be attributed to Alice in 2020? What is Bob's capital balance at 12/31/2020?
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Capital 1/1/2020
Alice 39285 30% 15,000
Bob 26528 25% 45,000
Carol 41594 45% 30,000
For 2020, Bob earned a salary of $42117. Each partner receives interest of 8% of the beginning capital balance for the year. Total income of the partnership in 2020 was $120266.
How much income should be attributed to Alice in 2020?
What is Bob's capital balance at 12/31/2020?
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