contestada

Tomas and Saturn are partners who share income in the ratio of 3:1. Their capital balances are Br.
40,000 and Br. 60,000 respectively. Income Summary has a credit balance of Br. 20,000. What is Tomas’s
capital balance after closing Income Summary to Capital?
A. Br. 45,000
B. Br. 55,000
C. Br. 65,000
D. Br. 75,000

Respuesta :

Final answer:

To determine Tomas's capital balance after closing the Income Summary to Capital, we need to distribute the credit balance of Br. 20,000 in the Income Summary to Tomas and Saturn according to their profit-sharing ratio of 3:1.

Explanation:

First, let's calculate the total profit:

Total Profit = Credit balance of Income Summary = Br. 20,000

Now, let's distribute this profit according to their profit-sharing ratio:

Tomas's share = (3/4) * Total Profit

Saturn's share = (1/4) * Total Profit

Tomas's share = (3/4) * 20,000 = Br. 15,000

Saturn's share = (1/4) * 20,000 = Br. 5,000

ion:

Now, we add Tomas's share of the profit to his initial capital balance:

Tomas's new capital balance = Tomas's initial capital balance + Tomas's share of profit

Tomas's new capital balance = Br. 40,000 + Br. 15,000 = Br. 55,000

So, Tomas's capital balance after closing Income Summary to Capital is Br. 55,000.

Otras preguntas