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Tomas and Saturn are partners who share income in the ratio of 3:1. Their capital balances are $40,000 and $60,000, respectively. The partnership generated net income of $20,000. What is Saturn's capital balance after closing the revenue and expense accounts to the capital accounts

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TomShelby

Answer:

capital balance of Saturn:        65,000

Explanation:

Saturn participation in the net income:

1:3 >> 1 / 4 = 25%

capital balance of Saturn      60,000

net income : 20,000 x 25% =  5,000  

capital balance of                  65,000

We simply add up the percentage of participation in the win/losses to Saturn capital account

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