The following information is available on TGR Enterprises, a partnership, for the most recent fiscal year: There are three partners in TGR Enterprises: Tracey, Gregory and Rodgers. At the end of the year, the partners' capital accounts were in the ratio of 2:1:2, respectively, based on their proportionate investments and withdrawals. Compute the ending capital balances of the three partners.
A)Tracey = $108,000; Gregory = $54,000; Rodgers = $108,000.
B)Tracey = $90,000; Gregory = $90,000; Rodgers = $90,000.
C)Tracey = $204,000; Gregory = $102,000; Rodgers = $204,000.
D)Tracey = $84,000; Gregory = $102,000; Rodgers = $84,000.
E)Tracey = $60,000; Gregory = $30,000; Rodgers = $60,000.

Question

The following information is available on TGR Enterprises, a partnership, for the most recent fiscal year:  There are three partners in TGR Enterprises: Tracey, Gregory and Rodgers. At the end of the year, the partners' capital accounts were in the ratio of 2:1:2, respectively, based on their proportionate investments and withdrawals. Compute the ending capital balances of the three partners.
A)Tracey = $108,000; Gregory = $54,000; Rodgers = $108,000. 
B)Tracey = $90,000; Gregory = $90,000; Rodgers = $90,000. 
C)Tracey = $204,000; Gregory = $102,000; Rodgers = $204,000. 
D)Tracey = $84,000; Gregory = $102,000; Rodgers = $84,000. 
E)Tracey = $60,000; Gregory = $30,000; Rodgers = $60,000.

Quizplus · Accepted Answer

Let's assume the total capital of TGR Enterprises as x.
Then, the capital accounts of Tracey, Gregory and Rodgers can be expressed as 2x/5, x/5 and 2x/5 respectively.
We know that their total capital is equal to the sum of their individual capital accounts, which is x.
So, we can write the equation, 2x/5 + x/5 + 2x/5 = x
Simplifying it, we get x = $270,000
Now, substituting the value of x in the above expressions, we get:
Tracey's capital = 2x/5 = 2 * $270,000 / 5 = $108,000
Gregory's capital = x/5 = $270,000/5 = $54,000
Rodgers' capital = 2x/5 = 2 * $270,000 / 5 = $108,000
Therefore, the ending capital balances of the three partners are Tracey = $108,000; Gregory = $54,000; Rodgers = $108,000

The Following Information Is Available on TGR Enterprises, a Partnership