Patty and paul are partners who share income in the ratio of 3: 2. their capital balances are $90,000 and $130,000, respectively, on january 1. income summary has a credit balance of $40,000 at the end of the year. what is paul’s capital balance after closing income summary to the capital accounts? group of answer choices

Paul account: 138,000

Explanation:

the income will be split in a 3:2 ratio between the partners

3 + 2 = 5 parts in total

from which Patty has 3 and Paul 2

Paul participation on the distribution:

40,000 income summary x  2/5 Paul's participation ratio = 8,000

Paul's capital account after distribution: 130,000 + 8,000 = 138,000

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23