The partner equity balances are Jack, Capital 30000,Current 90000; Bob, Capital 35000, Current 12000; and Tim, Capital 14000, Current 4000.  The profit-and-loss sharing ratio is 1:3:2 to Jack , Bob and Tim.  Jack withdraws and receives 55000 cash from the partnership. The balance of Tim's capital account after Jack's withdraw is: The balance of Tim's current account after Jack's withdraw is:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

The partner equity balances are Jack, Capital 30000,Current 90000; Bob, Capital 35000, Current 12000; and Tim, Capital 14000, Current 4000. 

The profit-and-loss sharing ratio is 1:3:2 to Jack , Bob and Tim.  Jack withdraws and receives 55000 cash from the partnership.

The balance of Tim's capital account after Jack's withdraw is:

The balance of Tim's current account after Jack's withdraw is:

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Partners and Partnerships
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education