Answer :
Given:
Jordon and Heidi share income equally.
partnership net income is $40,000
Jordon made withdrawals of $14,000
Heidi made withdrawals of $15,000
beginning of the year, the capital account balances were: jordon, $40,000; heidi, $58,000
Jordon Heidi
Beginning Balance 40,000 58,000
Add: Net Income 50:50 20,000 20,000
less: Withdrawals (14,000) (15,000)
Ending Balance 46,000 63,000
Jordon's capital account balance at the end of the year is $46,000.00
Profit and loss is distributed equally between the partners. However, if the problem does not state how the profit or losses will be distributed, it will be distributed according to the proportion of their capital balances.
Jordon and Heidi share income equally.
partnership net income is $40,000
Jordon made withdrawals of $14,000
Heidi made withdrawals of $15,000
beginning of the year, the capital account balances were: jordon, $40,000; heidi, $58,000
Jordon Heidi
Beginning Balance 40,000 58,000
Add: Net Income 50:50 20,000 20,000
less: Withdrawals (14,000) (15,000)
Ending Balance 46,000 63,000
Jordon's capital account balance at the end of the year is $46,000.00
Profit and loss is distributed equally between the partners. However, if the problem does not state how the profit or losses will be distributed, it will be distributed according to the proportion of their capital balances.