17. The total column of the partners\' Capit Capital, January 1.. pital Statemen

Question

17. The total column of the partners' Capit Capital, January 1.. pital Statement for the Hunter Company is as follorw Drawings.. The partnership has three partners. The first two partners have ending capital balances that are equal balance of the third partner? What is the endi d. $22,000 a. $24,000 b. $16,000 c. $20,000 I, and Cole have partnership capital account balances of $64,000 cach. Income and loss equally. Cole agrees to sell three-fourths of his ownership interest to Ace for $$5,000 and one- Ace, Bell for $20,000. Ace and Bell will use personal assets to purchase Cole's interest. The partnership record Cole's withdrawal from the partnership would be a. Cole, Capital ....75,000 5,000 75,000 Ace, Capital . Bell, Capital . .. . 55,000 20,000 64,000 48,000 16,000 :. Cole, Capital Ace, Capital Bell, Capital

Explanation / Answer

17. ANSWER: c. 20000 Ending balance in capital statement 50000+20000-30000+60000 100000 Ratio of ending balances 1:1:1/2 ie. 2:2:1 So, ending balance of 3rd partner=1/5*100000= 20000 18. ANSWER: b. Cole, Capital 64000 Ace,Capital 48000 Bell, Capital 16000 19.b. 3,2,1,4 20.. ANSWER: a. D E F Capital Balances 20000 30000 10000 Loss on sale of assets (95000-65000)=30000 -6000 -9000 -15000 14000 21000 0 Safe distribution 12000 18000 0 21. ANSWER: c. 26000 D E F Capital Balances 20000 30000 10000 Gain on sale of assets (125000-95000)=30000 6000 9000 15000 26000 39000 25000 22. d. The personal assets of partners D,E & F

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