Young's capital balance = $20,000
He received $25,000 in final settlement.
Extra amount received in final settlement = $25,000 - $20,000 = $5,000
Collins and Baker shared profit in the ratio of 3:2 ratio
Collins' share = $5,000 * 3/5 = $3,000
Baker's share = $5,000 * 2/5 = $2,000
Collins' capital decreases by $3,000 & Baker's capital decreases by $2,000.
Answer is A. Collins' capital decreases by $3,000.
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effect on the capital accounts of Collins and Baker? Young reies from the partnership of Colin...
effect on the capital accounts of Collins and Baker? Young reies from the partnership of Colin Baker and Young. The partners share profits and losses in the ratio of 325, respectively Young's capital balance 520.000, and he receives 525.000 in final settlement What is the O A Collins capital decreases by 53.000 O Colins capital increases by 53,000 OC. Baker's capital decreases by 55.000 OD. Colins capital decreases by 55.000
effect on the capital accounts of Collins and Baker? Young reies from the partnership of Colin Baker and Young. The partners share profits and losses in the ratio of 325, respectively Young's capital balance 520.000, and he receives 525.000 in final settlement What is the O A Collins capital decreases by 53.000 O Colins capital increases by 53,000 OC. Baker's capital decreases by 55.000 OD. Colins capital decreases by 55.000