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5 May, 08:51

Mace and Bowen are partners and share equally in income or loss. Mace's current capital balance is $135,000 and Bowen's is $120,000. Mace and Bowen agree to accept Kent with a 30% interest in the partnership. Kent invests $115,000 in the partnership. The amount credited to Kent's capital account is:

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  1. 5 May, 10:35
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    The amount credited to Kent's capital account is $111,000.

    Explanation:

    Mace Bowen Kent Total

    Contribution $135,000 $120,000 $115,000 370,000

    Kent share = 115,000

    Total Capital = 370,000

    Kent share in total capital = 30%

    Amount credited tothe Kent's account = $370,000 x 30%

    Amount credited tothe Kent's account = $111,000
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