Ask Question
14 July, 06:36

Patty and paul are partners who share income in the ratio of 3:2. their capital balances are $90,000 and $130,000, respectively, on january 1. the partnership generated net income of $40,000 for the year. what is paul's capital balance after closing the revenue and expense accounts to the capital accounts?

+3
Answers (1)
  1. 14 July, 09:40
    0
    Since the partnership is 3:2, you need to take the new income and distribute it according to the ratio.

    40,000 (there are five total parts or 8,000) and Patty gets 3 (24,000) and Paul gets 2 (16,000).

    With Paul's previous balance (130,000) he would have 146,000.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Patty and paul are partners who share income in the ratio of 3:2. their capital balances are $90,000 and $130,000, respectively, on january ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers