Prepare statement of Partners capital Assume that there are three partners in a partnership, A,...
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Accounting
Prepare statement of Partners capital
Assume that there are three partners in a partnership, A, B, and C. Partners A and B each began the year with a capital accounts of $500,000. Partner C was admitted to the partnership during the year with a capital contribution of $300,000. The Partnership Agreement provides for a salary to Partner C of $50,000 and interest on the respective Capital Accounts of $25,000/$25,000/$11,250, respectively. During the year, the partners withdrew $20,000/$20,000/$10,000 and the allocation of profit was $115,500/$115,500/$57,750, respectively. Prepare the Statement of Partners Capital for the year.
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