Homework Answers
a.
| Particulars | C | F | R | Total |
| Net Income | 370,000 | |||
| Allocated Salaries | 30,000 | 50,000 | 70,000 | (150,000) |
| Balance Income | 220,000 | |||
| Interest on Beginning Capital @ 10% | 25,000 | 20,000 | 15,000 | (60,000) |
| Balance Income | 160,000 | |||
| Share in the ratio 2:1:1 | 80,000 | 40,000 | 40,000 | (160,000) |
| TOTAL | 135,000 | 110,000 | 125,000 | 0 |
b.
| Particulars | $ |
| Beginning Capital Balance | 250,000 |
| Add: Salary Income | 30,000 |
| Add: Interest on Beginning Capital | 30,000 |
| Add: Share in Profits | 80,000 |
| Less: Drawings / Withdrawals | (140,000) |
| Ending Capital Balance | 245,000 |
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