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IGGY'S CAPITAL
TOTAL 226,000.00
Additional Solution:
IGGY'S ACCOUNT
January 1 Capital Balances 200,000.00
Permanent Withdrawals
Jun. 3 -24,000.00
Additional Investments of Capital
July-20 80,000.00
TOTAL 256,000.00
SWAGGY'S CAPITAL
CAPITAL ACCOUNT PORTION * OF THE YEAR AVERAGE CAPITAL
DATE
BALANCES UNCHANGED BALANCES
Jan.1 240,000.00 4 960,000.00
May.2 210,000.00 5 1,050,000.00
Oct.3 310,000.00 3 930,000.00
TOTAL 2,940,000.00
Divide by: Total Number
of Months 12
TOTAL 245,000
Additional Solution:
SWAGGY'S ACCOUNT
January 1 Capital Balances 240,000.00
Permanent Withdrawals
May.2 -30,000.00
Additional Investments of Capital
Oct.2 100,000.00
TOTAL 310,000.00
REQUIREMENT 2
IGGY SWAGGY TOTAL
Salary Allowances 40,000.00 60,000.00 100,000.00
Interest on Average Capital
(10%)
Iggy (224,000 x 10%) 22,400.00
Swaggy (238,000 x 10%) 23,800.00 46,200.00
Balance to be Divided
46,900.00 46,900.00 93,800.00
Equally (93,800)
Share of Partners in Profit 109,300.00 130,700.00 240,000.00
IGGY SWAGGY
Salary Allocation 40,000.00 60,000.00
Interest Distribution 22,400.00 23,800.00
REQUIREMENT 3
IGGY SWAGGY TOTAL
Salary Allowances 40,000.00 60,000.00 100,000.00
Interest on Average Capital
(10%)
Iggy (200,000 x 10%) 20,000.00
Swaggy (240,000 x 10%) 24,000.00 44,000.00
Balance to be Divided
48,000.00 48,000.00 96,000.00
Equally (93,800)
Share of Partners in Profit 109,300.00 130,700.00 240,000.00
IGGY SWAGGY
Salary Allocation 40,000.00 60,000.00
Interest Distribution 20,000.00 24,000.00