Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $90,000 cash from Busby and $160,000 from Beatty. During Year 1, the partnership earned $68,000 in cash revenues and paid $43,700 for cash expenses. Busby withdrew $2,900 cash from the business, and Beatty withdrew $5,000 cash. The net income was allocated to the capital accounts of the two partners in proportion to the amounts of their original investments in the business.

Faith Busby and Jeremy Beatty started the B\&B partnership on January 1, Year 1, The business acquired $90,000 cash from Busby and $160,000 from Beatty. During Year 1, the partnership earned $68,000 in cash revenues and paid $43,700 for cash expenses. Busby withdrew $2,900 cash from the business, and Beatty withdrew $5,000 cash. The net income was allocated to the capital accounts of the two partners in proportion to the amounts of their original investments in the business