Allocation of Interest on Capital Accounts and Profit to Partners

Assume that there are three partners in a partnership, A, B, and C. Partners A and B each began the year with a capital account of $900,000. Partner C was admitted to the partnership during the year with a capital contribution of $630,000. The Partnership Agreement provides for a salary to Partner C of $90,000 and interest on the respective Capital Accounts of $45,000/$45,000/$23,625, respectively. During the year, the partners withdrew $36,000/$36,000/$21,000 and the allocation of profit was $207,900/$207,900/$121,275, respectively.

Prepare the Statement of Partners Capital for the year.