Jim, Jyoti and Joy started a partnership business on Jan 1, 2019. The Net Income and...

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Jim, Jyoti and Joy started a partnership business on Jan 1, 2019. The Net Income and Net Loss will be distributed based on ca

The accounts balances at the beginning of the partnership will be recorded as: Jim, Capital 220,000 Jyoti, Capital 55,000 Joy

business accounting

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Answer 1

Answer #1

The account balances in the end of 2020 will be:

Jim, Capital	193600
Jyoti, Capital	48400
Joy, Capital	96800

Working:

Distribution of Net loss for 2020:

Jim: $84700 x $220000/$385000 = $48400

Jyoti: $84700 x $55000/$385000 = $12100

Joy: $84700 x $110000/$385000 = $24200

	Jim	Jyoti	Joy
Balances, Jan. 1, 2019	220000	55000	110000
Add: Net income for 2019	22000	5500	11000
Balances at end of 2019	242000	60500	121000
Less: Net loss for 2020	48400	12100	24200
Balances at end of 2020	193600	48400	96800

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Answer 2

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