Tomas and Saturn are partners who share income in the ratio of 3:1. Their capital balances are $80,000 and $120,000, respectively. The partnership generated net income of $30,000. What is Tomas's capital balance after closing the revenue and expense accounts to the capital accounts?

Question

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Tomas's share of the net income is calculated based on the income-sharing ratio of 3:1. With a net income of $30,000, Tomas's share is 3/4 of $30,000, which is $22,500. Adding this to his original capital balance of $80,000 gives a new capital balance of $102,500.

Tomas and Saturn Are Partners Who Share Income in the Ratio