Bill and Ted are partners who share net income according to a 3:2 ratio. If the net income for the year was $200,000 and each partner began the year with a $50,000 balance in the capital account, what would Bill's capital balance be if he had drawings of $75,000?

Bill and Ted are partners who share net income according to a 3:2 ratio. If the net income for the year was $200,000 and each partner began the year with a $50,000 balance in the capital account, what would Bill's capital balance be if he had drawings of $75,000?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

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Question

Bill and Ted are partners who share net income according to a 3:2 ratio. If the net income for the year was $200,000 and each partner
began the year with a $50,000 balance in the capital account, what would Bill's capital balance be if he had drawings of S75,000?
O $75,000
O $145,000
O $120,000
O $95,000

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