What will be the total amount credited to capital account

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Q1- Norton invested $20,000 in the partnership of Maxwell and Slade. The capital balance of Maxwell and Slade were $40,000 and $60,000, respectively. Income and loss is shared according to the ratio of equity balances. Norton was to receive 25% interest in the new partnership. Prepare journal entry to record this transaction?

Q2- C and D are partners who share profits and losses as - salary allowance of $15,000 is allocated to each partner, 10 % interest on their initial investment ( C's capital 60,000 and D's capital 40,000) and remaining equally if any. Earnings for the period total $70,000. What will be the total amount credited to the Capital account of each partner when the Income Summary account is closed?

Reference no: EM132755685

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