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Van and Shapiro formed a partnership. As part of the formation, Van contributed equipment whose cost to her was $60,000, with accumulated depreciation for tax purposes of $36,000. The partnership awarded her $40,000 towards her partnership interest for the equipment. The partnership assumed $10,000 of Shapiros personal debts when she was admitted into the partnership After one year of operation, the partnership had the following partial trial balance: Debit Credit 70,000 95,000 Van, Capital Shapiro, Capital Van, Withdrawals Shapiro, Withdrawals Service Revenue Salaries Expense (to employees) Rent Expense Supplies Expense Other Operating Expenses 15,000 14,000 300,000 100,000 36,000 28,000 15,000 Partners split profits as follows: (1) A salary of $30,000 is paid to Van. Remaining profits (or losses) are split 40% to Van, the remainder to Shapiro. Required: Calculate the two partners ending capital balances.
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Calculatim o Profit attiLuttable each Partner- Partculars Sewice Revenus wotles not Am ount n 3,00,000 less Salasies Expete (em playee), Rent Expemse Supltes Expense. otler apexa ling Exentes Salan-(To-Van) ,000 28,00D S,000 30,000 Phofte avallalle for LOOO (91000 x 40% ) Balance attyibutalle to [91,000-36, 1001 Sy, Goo hapivo

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