Olivia Greer is a partner in Made for You. An analysis of Greer's capital account indicates that during the most recent year, she withdrew $29,000 from the partnership. Her share of the partnership's net loss was $20,500 and she made an additional equity contribution of $19,000. Her capital account ended the year at $159,000. What was her capital balance at the beginning of the year

Question

Business

Fluffy

13 May, 02:46

Olivia Greer is a partner in Made for You. An analysis of Greer's capital account indicates that during the most recent year, she withdrew $29,000 from the partnership. Her share of the partnership's net loss was $20,500 and she made an additional equity contribution of $19,000. Her capital account ended the year at $159,000. What was her capital balance at the beginning of the year

+2

Answers (1)

Know the Answer?

Gordon Juarez · Answer 1

Beginning capital balance will be $189500

Explanation:

We have given ending balance = $159000

It is given that she withdraw $29000 from the partnership

So withdraw amount = $29000

Net loss = $20500

And additional contribution = $19000

We have to fond the capital balance at the beginning of the year

So capital balance at the beginning of the year will be = Ending balance + withdraw amount + net loss - additional contribution = $159000 + $29000 + $20500 - $ 19000 = $189500

So beginning capital balance will be $189500