Question

Olivia Greer is a partner in Made for You. An analysis of Greer's capital account indicates that during the most recent year, she withdrew $30,000 from the partnership. Her share of the partnership's net loss was $16,000 and she made an additional equity contribution of $10,000. Her capital account ended the year at $150,000. What was her capital balance at the beginning of the year?

Answer 1

Answer: Beginning Balance $186,000

Ending balance = Beginning balance +Equity Contribution - Share of loss - with drawls

$150,000 = Beginning balance + $10,000 - $16,000 - $30,000

$150,000 = Beginning balance - $36,000

Beginning balance = $186,000