The following information is available on Stewart Enterprises,a partnership,for the most recent fiscal year:
Total partnership capital at beginning of the year $180,000
Partnership net income for the year $150,000
Withdrawals by partners during the year $120,000
Additional investments by partners during the year $ 60,000
There are three partners in Stewart Enterprises:
Stewart,Tedder and Armstrong.At the end of the year,the partners' capital accounts were in the ratio of 2:
1:
2,respectively.Compute the ending capital balances of the three partners.

Question

Quizplus · Accepted Answer

Ending Partnership Capital = Beginning Partnership Capital + Partnership Net Income +
Additional Investments - Withdrawals by Partners
Ending Partnership Capital = $180,000 + $150,000 + $60,000 - $120,000 = $270,000
Based on the partners' ending capital balances in the ratio of 2:1:2, the partners would have the following ratios: Stewart has 2/5 of the total, Tedder has 1/5 of the total and Armstrong has 2/5 of the total. Therefore, Stewart and Armstrong have ending balances of $108,000 ($270,000 * 2/5) and Tedder has an ending balance of $54,000 ($270,000 * 1/5).

The Following Information Is Available on Stewart Enterprises,a Partnership,for the Most