Assuming that john had an initial capital contribution of


Question - David, Chris and John formed a partnership on July 31, 2017. They decided to share profits equally, but inserted a clause in the partnership agreement where any losses would be allocated in the ratio of 4:3:2, respectively. For the year ended December 31, 2017, the firm earned a net income of $47,000. However, for the year ended December 31, 2018, the firm incurred a loss of $65,000. Assuming that John had an initial capital contribution of $36,000 and made no withdrawals, what is the balance of John's Capital account as of December 31, 2018? (Assume that none of the partners made any further contributions to their capital accounts.)

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Accounting Basics: Assuming that john had an initial capital contribution of
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