Tomas and Saturn are partners who share income in the ratio of 3:1 (3/4 to Tomas and 1/4 to Saturn). Their capital balances are $93,800 and $70,600, respectively. The partnership generated net income of $44,800. What is Tomas's capital balance after closing the revenue and expense accounts to the capital accounts? a.$142,660 b.$132,265 c.$127,400 d.$122,029
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.
Please Answer the following step by step.
Tomas and Saturn are partners who share income in the ratio of 3:1 (3/4 to Tomas and 1/4 to Saturn). Their capital balances are $93,800 and $70,600, respectively. The partnership generated net income of $44,800. What is Tomas's capital balance after closing the revenue and expense accounts to the capital accounts?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
