Question

Carla and eliza share income equally. during the current year the partnership net income was $40,000. carla made withdrawals of $12,000 and eliza made withdrawals of $17,000. at the beginning of the year, the capital account balances were: carla capital, $42,000; eliza capital, $55,000. eliza's capital account balance at the end of the year is

Answer 1

$58,000

Step-by-step explanation:

As we know that

Ending balance of capital account = Beginning balance of capital account + net income - the withdrawn amount

= $55,000 + $20,000 - $17,000

= $58,000

Since the net income is shared equally which means $20,000 is for Carla and $20,000 for Eliza

We simply applied the equation above so that the exact amount can arrive