Reference no: EM132543108
Question - AGF partnership begins its first year of operation with the following capital balances and profit and loss percentages:
Able Capital $ 60,000 (50%)
Green Capital $80,000 (20%)
Frank Capital $ 100,000 (30%)
Each partner is allocated interest of 5% on beginning capital balances.
Green is allocated salary of $20,000 for the full year. Frank is allocated salary of $10,000 for the full year. Able is not allocated salary.
Each partner has drawings of $30,000 in the first year.
Assume that partnership net income in the first year is $200,000.
Required - Prepare a schedule solving the ending balance in each of the partner's capital accounts at the end of the year.
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