At March 31, 2021, Mira Olynik and J.P. Dalton, the two partners of Kanko Datamatics, had capital account balances of $ 150,000 each. Sarah Lumas joined the partnership on March 31, 2021 and received a 1/3 interest in the partnership in exchange for a capital contribution of $ 175,000.
For the year ended March 31, 2022, Kanko Datamatics had profit of $ 450,000, which is allocated equally to the three partners. Withdrawals during the year were $ 75,000, $ 90,000, 60,000 by Olynik, Dalton, and Lumas, respectively.
Instructions
a) Record the transaction on March 31, 2021 admitting Lumas into the partnership.
b) Calculate the balance of each partner's capital account after the transaction.
c) Prepare the statement of partners' equity for the year ended March 31, 2022.

Question

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The Answer of At March 31, 2021, Mira Olynik and J.P. Dalton, the two partners of Kanko Datamatics, had capital account balances of $ 150,000 each. Sarah Lumas joined the partnership on March 31, 2021 and received a 1/3 interest in the partnership in exchange for a capital contribution of $ 175,000.
For the year ended March 31, 2022, Kanko Datamatics had profit of $ 450,000, which is allocated equally to the three partners. Withdrawals during the year were $ 75,000, $ 90,000, 60,000 by Olynik, Dalton, and Lumas, respectively.
Instructions
a) Record the transaction on March 31, 2021 admitting Lumas into the partnership.
b) Calculate the balance of each partner's capital account after the transaction.
c) Prepare the statement of partners' equity for the year ended March 31, 2022.