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Fatima and Jaddon Have Capital Balances of $50 000 and $80

Question 1

Multiple Choice

Fatima and Jaddon have capital balances of $50 000 and $80 000,respectively and use the variable capital balances method.If their profit/loss sharing ratios are Fatima 40% and Jaddon 60% calculate Jaddon's capital balance after a net loss of $60 000 is distributed.


A) $80 000
B) $116 000
C) $44 000
D) $50 000

Correct Answer:

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