Homework SourseCaitlin Chris and Molly are partners and share income and lo
Caitlin, Chris, and Molly are partners and share income and losses in a 3:4:3 ratio. The partnership\'s capital balances are Caitlin, $120,000; Chris, $80,000; and Molly, $100,000. Paul is admitted to the partnership on July 1 with a 20% equity and invests $60,000. The balance in Caitlin\'s capital account immediately after Paul\'s admission is:
$60,000
$123,600
$116,400
$120,000
$72,000
| $60,000 | ||
| $123,600 | ||
| $116,400 | ||
| $120,000 | ||
| $72,000 |
Solution
Answer
72000
the total capital = 400000
add ; contribution = 60000
total capital = 460000
20 % of share in partner
new partner capital = 460000 * 20 %
= 72000
