The following information is available on TGR Enterprises, a
partnership, for the most recent fiscal year:
| Total partnership capital at beginning of the year | $ | 201,000 |
| Partnership net income for the year | $ | 171,000 |
| Withdrawals by partners during the year | $ | 99,000 |
| Additional investments by partners during the year | $ | 81,000 |
There are three partners in TGR Enterprises: Tracey, Gregory and
Rodgers. At the end of the year, the partners' capital accounts
were in the ratio of 2:1:2, respectively. Compute the ending
capital balances of the three partners.
Multiple Choice
Tracey = $99,400; Gregory = $110,400; Rodgers = $99,400.
Tracey = $141,600; Gregory = $70,800; Rodgers = $141,600.
Tracey = $220,800; Gregory = $110,400; Rodgers = $220,800.
Tracey = $68,400; Gregory = $34,200; Rodgers = $68,400.
Tracey = $118,000; Gregory = $118,000; Rodgers = $118,000.
Solution:
From the given data we need to find the partner's capital accounts were in the ratio of 2:1:2, at the end of the year,
| Details | Amount($) |
| Total partnership capital at beginning of the year | $201,000 |
| Add: Partnership net income for the year | $171,000 |
| Add: Additional investments by partners during the year | $81,000 |
| $453,000 | |
| Less: Withdrawals by partners during the year | ($99,000) |
| Ending partnership capital | $354,000 |
The partner's capital accounts were in the ratio of 2:1:2, at the end of the year,
Tracey = $354,000*2/5 = $141,600.
Gregory = $354,000*1/5 = $70,800.
Rodgers = $354,000*2/5 = $141,600.
So, the correct option is (b). Tracey = $141,600; Gregory = $70,800; Rodgers = $141,600.
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