Income before interest and alphas salary was 175000


Question - Alpha and Beta are equal partners. At the beginning of the year Alpha has $500,000 in his capital account while Beta has $800,000 in her partnership account. The partnership agreement states that partners get 15% interest on their capital accounts and that Alpha gets a $30,000 salary for work done for the partnership. Any remaining profits or losses are equally divided between the partners. Income before interest and Alpha's salary was $175,000. Determine the ending capital balance for Alpha and Beta.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Income before interest and alphas salary was 175000
Reference No:- TGS02583819

Now Priced at $20 (50% Discount)

Recommended (97%)

Rated (4.9/5)