The Partners' Capital Statement for TSB Company reported the following information in total: $\begin{array}{llr}
\text { Capital, January 1 } &\$240,000\
\text {Additional investment. } &80,000\
\text { Drawings. } &160,000\
\text { Net income } &200,000
\end{array}$
The partnership has three partners: Toub Sauls and Birch with ending capital balances in a ratio 40:20:40. What are the respective ending balances of the three partners?

Question

The Partners' Capital Statement for TSB Company reported the following information in total: $\begin{array}{llr}
  \text { Capital, January 1 } &\$240,000\
 \text {Additional investment.  } &80,000\
 \text { Drawings. } &160,000\
\text { Net income } &200,000
\end{array}$
 The partnership has three partners: Toub Sauls and Birch with ending capital balances in a ratio 40:20:40. What are the respective ending balances of the three partners?

Quizplus · Accepted Answer

1. Calculate the total capital by adding the ending capital balances of the partners: 
Total capital = 11eb1392_1bc4_895c_8021_ffb7d86e354e_TB3109_00 = $360,000

2. Use the ratio to find the ending balances of each partner: 
Toub's ending capital = 40/100 * $360,000 = $144,000 
Saul's ending capital = 20/100 * $360,000 = $72,000 
Birch's ending capital = 40/100 * $360,000 = $144,000

Therefore, the respective ending balances of the three partners are: 
Toub $144,000; Sauls $72,000; Birch $144,000.

The Partners' Capital Statement for TSB Company Reported the Following