A and B are partners.A has $50,000 in his capital account and B has $75,000 at the beginning of the year.A receives a salary of $15,000 and B receives $12,000.Each partner receives 5% of the beginning balance of their capital accounts.The remainder is split 45% to A and 55% to
B.Net income for the year was $125,000.What is the amount of each capital account at year-end?

Question

Quizplus · Accepted Answer

The Answer of A and B are partners.A has $50,000 in his capital account and B has $75,000 at the beginning of the year.A receives a salary of $15,000 and B receives $12,000.Each partner receives 5% of the beginning balance of their capital accounts.The remainder is split 45% to A and 55% to
B.Net income for the year was $125,000.What is the amount of each capital account at year-end?

A and B Are Partners