Pia and Ramona are partners who share income in the ratio of 3:2. Their capital balances are $90,000 and $130,000 respectively. Income Summary has a credit balance of $40,000. What is Pia's capital balance after closing Income Summary to Capital?

Question

Quizplus · Accepted Answer

Pia's share of the income is 3/5 of $40,000, which is $24,000. Adding this to her initial capital balance of $90,000 gives her a new capital balance of $114,000.

Pia and Ramona Are Partners Who Share Income in the Ratio