Michael and George have been in partnership for several years, sharing profits and losses in the...
Michael and George have been in partnership for several years, sharing profits and losses in the ratio 3:4. At 1 January they had the following credit balances on their capital and current accounts:
Capital $ Current $
Michael 65,000 11,486
Donald 80,000 9,637
The partnership statement of profit or loss for the year to 31 December shows a net profit of $28,595, and the partners had made drawings of $16,500 each.
Required:
Calculate the balance of Michael’s current account at 31 December.
(10 marks)
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