PROBLEM E12-4

a) what is the net capital for Johnson?

b) what is the net capital for Brook?
Solution:

Johnson's contribution:
Debit
9,000
21,000
43,000
108,000
181,000
Credit
23,000
13,000
53,000
89,000 11,000
92,000
Brooks contribution:

Debit
3,000
14,000
40,000
58,000
115,000
Credit
12,000
103,000
d) in each instance, calculate the partners ending capital balance!

allocating income

debit income summary

credit capital partner a and credit partner capital b

allotating a loss

debit capital partner a and b

credit income summary

Sharing capital invesment

Partener capital / total capital
 Danolo Goldma
debit Credit Debit
$ 96,000.00 $ 96,000.00 $ 168,000.00
-$ 62,400.00 -$ 62,400.00 -$ 62,400.00

$ 264,000.00
$ 105,600.00 $ 38,400.00 $ 105,600.00
$ 132,000.00 $ 48,000.00 $ 132,000.00
36% $ 100,000.00 $ 40,000.00 $ 100,000.00
64% $ 32,000.00 $ 16,000.00 $ 32,000.00
40%
60% $ 176,000.00

32,000
Credit
$ 168,000.00
-$ 62,400.00

$ 67,200.00
$ 84,000.00
$ 60,000.00
$ 16,000.00

$ 332,800.00
A) CALCULATE PARNTERS CAPITAL BALANCES AFTER ADMISSION OF PARTNER

115,000 75,000 190,000 70,000 260,000

52,000 18,000
52,000
208,000
124,800
83,200
 Dt Ct
Cash $ 70,000.00
Capital MO $ 53,000
Capital Bo $ 10,800.00
Capital Go $ 7,200.00
CALCULATE PARTNERS ENDING CAPITAL BALANCES AFTER WITHDRAWAL OF PARNTER
17%
Sean's capital 33%
cash 30,000 50%
Mohid capi 4,000
Beth 6,000

Beth capital
126,000
Mohid capital
84,000
 40,000 40%
80,000 60%
120,000