Franco and Elisa share income equally. During the current year the partnership net income was $40,000. Franco made withdrawals of $12,000 and Elisa made withdrawals of $17,000. At the beginning of the year, the capital account balances were: Franco capital, $42,000; Elisa capital, $58,000. Elisa's capital account balance at the end of the year is

Question

Quizplus · Accepted Answer

Since Franco and Elisa share income equally, the partnership net income of $40,000 would be split evenly between them, resulting in $20,000 each. 
Franco's beginning capital balance of $42,000 would be reduced by his withdrawals of $12,000 and increased by his share of the net income ($20,000), resulting in an ending capital balance of $50,000. 
Elisa's beginning capital balance of $58,000 would be reduced by her withdrawals of $17,000 and increased by her share of the net income ($20,000), resulting in an ending capital balance of $61,000. 
Therefore, the answer is C, $61,000.

Franco and Elisa Share Income Equally