The total column of the Partners' Capital Statement for Orson Company is as follows: The partnership has three partners. The first two partners have ending capital balances that are equal. The ending balance of the third partner is half of the ending balance of the first partner. What is the ending capital balance of the third partner?

Question

The total column of the Partners' Capital Statement for Orson Company is as follows:  The partnership has three partners. The first two partners have ending capital balances that are equal. The ending balance of the third partner is half of the ending balance of the first partner. What is the ending capital balance of the third partner?

Quizplus · Accepted Answer

Let X be the ending capital balance of each of the first two partners. 
Then the ending capital balance of the third partner is (1/2)X. 
The total ending capital balance is:
2(X) + (1/2)X = 2.5X 
Since the total ending capital balance is given as $150,000, we have:
2.5X = $150,000 
X = $60,000 
Therefore, the ending capital balance of the third partner is(1/2)X = (1/2)($60,000) =$30,000. 
So the answer is C, $60,000.

The Total Column of the Partners' Capital Statement for Orson