On January 1, 2021, the opening balances in the Ho-Hum partnership were Ho, $ 12,000 and Hum, $ 14,000. During the year, the partnership earned $ 80,000. Profit is split equally between the partners. Ho worked a significant amount during the year and withdrew $ 50,000. Hum was mainly a silent partner and withdrew only $ 10,000. At the end of the year, after all accounts have been closed, the balance in Hum's capital account was
A) $ 19,000.
B) $ 44,000.
C) $ 54,000.
D) $ 4,000.

Question

Quizplus · Accepted Answer

Hum's opening balance was $14,000. The partnership earned $80,000, split equally, so Hum's share is $40,000. After withdrawing $10,000, Hum's capital account is $14,000 + $40,000 - $10,000 = $44,000.

On January 1, 2021, the Opening Balances in the Ho-Hum