Question

Mace and Bowen are partners and share equally in income or loss. Mace's current capital balance is $135,000 and Bowen's is $120,000. Mace and Bowen agree to accept Kent with a 30% interest in the partnership. Kent invests $115,000 in the partnership. The amount credited to Kent's capital account is:

Answer 1

Answer:

The amount credited to Kent's capital account is $111,000.

Explanation:

                                              Mace         Bowen       Kent          Total

Contribution                       $135,000   $120,000    $115,000   370,000

Kent share = 115,000

Total Capital = 370,000

Kent share in total capital = 30%

Amount credited tothe Kent's account = $370,000 x 30%

Amount credited tothe Kent's account = $111,000