Question

Paul and roger are partners who share income in the ratio of 3:2. their capital balances are $90,000 and $130,000, respectively. income summary has a credit balance of $50,000 after the second closing entry. what is paul’s capital balance after closing income summary to the capital accounts?

Answer 1

So here is my answer to the given problem above.
Given that Paul has a capital balance of $90,000 and Roger has $130,000, and their credit balance summary is $50,000, here is how we are going to know Paul's capital balance after closing summary income:
3/5 for Paul and 2/5 for Roger (This is based from the 3:2 ratio)
Credit balance $50,000 x 2/5 =$20,000
Therefore, Roger's is:
$130,000 + $20,000 = $150,000
Hope this answer helps.