The document contains 7 sections that show capital account balances and profit/loss distributions for partners A, B, and C over multiple periods. Section 1 shows beginning capital balances, additional investments, withdrawals, average capital balances, and ending capital balances after distributing profits based on a 40-40-20 profit sharing ratio. Section 2 follows a similar format with a different profit sharing ratio. Section 3 shows a single partner's capital balances and share of profits. Sections 4-7 show additional examples of capital account calculations and distributions for partnerships with varying numbers of partners and profit/loss allocations.
The document contains 7 sections that show capital account balances and profit/loss distributions for partners A, B, and C over multiple periods. Section 1 shows beginning capital balances, additional investments, withdrawals, average capital balances, and ending capital balances after distributing profits based on a 40-40-20 profit sharing ratio. Section 2 follows a similar format with a different profit sharing ratio. Section 3 shows a single partner's capital balances and share of profits. Sections 4-7 show additional examples of capital account calculations and distributions for partnerships with varying numbers of partners and profit/loss allocations.
The document contains 7 sections that show capital account balances and profit/loss distributions for partners A, B, and C over multiple periods. Section 1 shows beginning capital balances, additional investments, withdrawals, average capital balances, and ending capital balances after distributing profits based on a 40-40-20 profit sharing ratio. Section 2 follows a similar format with a different profit sharing ratio. Section 3 shows a single partner's capital balances and share of profits. Sections 4-7 show additional examples of capital account calculations and distributions for partnerships with varying numbers of partners and profit/loss allocations.
The document contains 7 sections that show capital account balances and profit/loss distributions for partners A, B, and C over multiple periods. Section 1 shows beginning capital balances, additional investments, withdrawals, average capital balances, and ending capital balances after distributing profits based on a 40-40-20 profit sharing ratio. Section 2 follows a similar format with a different profit sharing ratio. Section 3 shows a single partner's capital balances and share of profits. Sections 4-7 show additional examples of capital account calculations and distributions for partnerships with varying numbers of partners and profit/loss allocations.
Profit Distribution: 0.2 0.4 0.4 A B C Total Salary 22,000 16,500 11,000 49,500 Interest 18,100 22,800 26,900 67,800 Remainder 11,740 23,480 23,480 58,700 Total 51,840 62,780 61,380 176,000
A B C Beginning Capital Balances 150,000 200,000 250,000 Additional investment 30,000 20,000 Withdrawals -10,000 -10,000 -30,000 Share in profit 51,840 62,780 61,380 Ending Capital Balances 221,840 272,780 281,380
2 Average Capital Balances:
A Jan. 1 80,000 12 960,000 Jul. 1 20,000 6 120,000 1,080,000 / 12 = 90,000 B Jan. 1 120,000
Profit Distribution: 0.3333 0.3333 0.3333 A B C Total Salary 12,000.00 10,000.00 8,000.00 30,000.00 Interest 7,200.00 9,600.00 13,800.00 30,600.00 Remainder 3,133.33 3,133.33 3,133.33 9,400.00 Total 22,333.33 22,733.33 24,933.33 70,000.00
A B C Beginning Capital Balances 80,000.00 120,000.00 180,000.00 Additional investment 20,000.00 Withdrawals -12,000.00 -12,000.00 -42,000.00 Share in profit 22,333.33 22,733.33 24,933.33 Ending Capital Balances 110,333.33 130,733.33 162,933.33
3 Beginning capital 120,000 Additional investment 60,000 Drawings -80,000 Share in profit (loss) [SQUEEZE] 50,000 Ending capital 150,000
Profit (50,000 / 40%) 125,000
4 Let X = profit after bonus and salaries
40,000 = 25,000 + 0.1X
X = 150,000
Profit after bonus and salaries 150,000
Add back: Bonus (0.1 x 150,000) 15,000 Profit before bonus 165,000
5 0.3 0.3 0.4 A B C Total Beginning capital bal. 144,000 144,000 144,000 432,000
Ending capital bal. 150,120 150,120 149,760 450,000
6 Total receipts (1,500,000 + 1,625,000) 3,125,000 Expenses -1,080,000 Income 2,045,000
0.48 0.52 A B Total Beginning capital 360,000 374,000 734,000 Additional inv. 22,000 22,000 Drawings -750,000 -750,000 Profit distribution 981,600 1,063,400 2,045,000 Ending capital 1,341,600 709,400 2,051,000
7 A B Total Beginnning capital bal. (1st yr) 200,000 100,000 300,000
