Mark and John are partners in a business. Mark's initial capital was ?250,000, and John's...
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Accounting
Mark and John are partners in a business. Mark's initial capital was ?250,000, and John's was ?200,000. During the year, Mark made an additional investment of ?30,000 and John ?25,000. The business incurred a net profit of ?40,000, which is to be shared in the ratio of their original capital contributions. Compute the ending capital balances for both Mark and John.
Partner
Initial Capital
Additional Investment
Net Profit Share
Ending Capital
Mark
?250,000
?30,000
?
?
John
?200,000
?25,000
?
?
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