Problem

Ell, Far, and Gar are partners who share profits and losses 20 percent, 20 percent, and 60...

Ell, Far, and Gar are partners who share profits and losses 20 percent, 20 percent, and 60 percent, respectively, after Ell and Far each receive a $12,000 salary allowance. Capital balances on January 1, 2011, are as follows:

Ell (20%)

$69,000

Far (20%)

85,500

Gar (60%)

245,500

During 2011, Gar invested an additional $20,000 in the partnership, and Ell and Far each withdrew $12,000, equal to their salary allowances as provided by the profit- and loss-sharing agreement. The partnership net assets at December 31, 2011, were $481,000.

REQUIRED: Prepare a statement of partnership capital for the year ended December 31, 2011.

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Solutions For Problems in Chapter 16