Question

Brief Exercise 163 Southern Skiles Co. had beginning capital balances on January 1, 2020, as follows: Patty Sharp $30,000 and Jim O'Connor $25,000. During the year, drawings were Sharp $15,000 and O'Connor $8,000. Net income was $40,000, and the partners share income equally Prepare the partners' capital statement for the year.

Answer 1

Answer:

The partners' capital statement is hereby attached.

Explanation:

I started with opening capital balance ,then added each partner's share of profit for the year and finally  I deducted the drawings by partners in the year to arrive at closing capital account balance.