A and B are partners. A has $ 50000in his capital account B has $ 75000 in his c

Question

A and B are partners. A has $ 50000in his capital account B has $ 75000 in his capital account at the begging of the year . A received a salary of $ 15000 and B received a salary of 12000. Reach partners received 5 percent of the beginnings balance of their capital account. The reminder is split 45 percent to A and 55 percent to B. Net income for the year was $125000. What is the amount of each capital account at year end. A and B are partners. A has $ 50000in his capital account B has $ 75000 in his capital account at the begging of the year . A received a salary of $ 15000 and B received a salary of 12000. Reach partners received 5 percent of the beginnings balance of their capital account. The reminder is split 45 percent to A and 55 percent to B. Net income for the year was $125000. What is the amount of each capital account at year end.

Explanation / Answer

A B Total Beginning capital 50000 75000 125000 Salary 15000 12000 27000 Interest on capital 2500 3750 6250 Remaining net income 41288 50463 91751 Ending capital 108788 141213 250001 Note: Amounts have been rounded off to 0 decimal places. Alternatively Ending capital for A is 108787.5 and B 141212.5

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