Question
Alfred and Barne share profits and losses in a ratio of 2:3, respectively, after salary allowances, and interest allowances allocations. Alfred and Barne receive salary
Alfred and Barne share profits and losses in a ratio of 2:3, respectively, after salary allowances, and interest allowances allocations. Alfred and Barne receive salary allowances of $30,000 and $60,000, respectively, and both partners receive 10% interest based upon the balance in their capital accounts on January 1. Partners' drawings are not used in determining the average capital balances. There is a total loss of $60,000 for the year.
Alfred Barne
January 1 capital balances $600,000 $900,000
Yearly drawings ($3,000 a month) 36,000 36,000
What is the final net amount of profit or (loss) closed to each partner's capital account?
Group of answer choices
($30,000) to Alfred and ($30,000) to Barne
$30,000 to Alfred and ($90,000) to Barne
($90,000) to Alfred and $30,000 to Barne
($24,000) to Alfred and ($36,000) to Barne
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