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Use the following information for the next two cases: A&B Partnership earns profit of ?240,000 in 20x1. The movements in the capital accounts of the partners are shown below: A, capital Jan. 1 (cr)120,000 , May 1 (dr) 20,000 , Aug.1 (cr) 10,000, Oct.1 (dr)10,000 B capital Jan.1 (cr) 80,000, May 1 (dr) 10,000, July 1 (cr) 20,000 , Oct. 1 (dr) 5,000 Case #1: Compute for the partners' respective shares if profits are to be divided based on average capital. Case #2: Compute for the partners' respective shares if the partners are entitled to 20% interest on the ending balances of their capital accounts and any remainder is shared equally.
Problem 1: Prepare tables for each partners computation of averaging capital and another table for distribution of profits and loss
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