partnership of X, Y and Z provides for the division of net income as follows: i. Y, who manages the partnership is to receive a salary of 10,500 monthly ii. Each partner is to be allowed interest at 10% on ending capital iii. Balance – 30:30:40 to X, Y and Z respectively During 2021, X invested an additional 96,000 in the partnership. Y made an additional investment of 60,000 and withdrew 90,000. Z withdrew 72,000. No other investments or withdrawals were made during 2021. On January 1, 2021, the capital balances were X – 280,00; Y – 300,000
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.
The
i. Y, who manages the partnership is to receive a salary of 10,500 monthly
ii. Each partner is to be allowed interest at 10% on ending capital
iii. Balance – 30:30:40 to X, Y and Z respectively
During 2021, X invested an additional 96,000 in the partnership. Y made an additional investment of 60,000 and withdrew 90,000. Z withdrew 72,000. No other investments or withdrawals were made during 2021. On January 1, 2021, the capital balances were X – 280,00; Y – 300,000 and Z – 170,000. Total capital at year-end was 975,000.
How much is the capital balance of Partner Y at December 31, 2021
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