Question
Betta, Gretta and Jetta operate a partnership business sharing profits and losses in the ratio of 5:3:2. Their capital balances at the beginning of the
Betta, Gretta and Jetta operate a partnership business sharing profits and losses in the ratio of 5:3:2. Their capital balances at the beginning of the year were $60,000, $40,000 and $30,000 respectively. For the year ending June 30, 2020 the following information is given to you.
Net Income from operations $120,000
Salaries paid to Betta and Gretta were $500 per month.
Jetta was paid a bonus of $5,000 for the year.
All the partners were to receive interest on capital @6% per annum on their beginning capital balances.
Betta, Gretta and Jetta withdrew $6,000, $5,000 and $8,000 respectively.
Required:
Prepare a statement to show the ending capital account balances of the 3 partners at the end of June 30, 2020.
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