Hill, Jones, and Vose have been partners throughout 2008. Their average balances for the year and their balances at the end of the year before closing the nominal accounts are as follows:

The income for 2008 is $108,000 before charging partners€™ salary allowances and before payment of interest on average balances at the agreed rate of 5% per annum. Annual salary allocations are $12,000 to Hill, $9,600 to Jones, and $8,800 to Vose. The balance of income is to be allocated at the rate of 60% to Hill, 10% to Jones, and 30% to Vose.
It is intended to distribute cash to the partners so that, after credits and allocations have been made as indicated in the preceding paragraph, the balances in the partners€™ accounts will be proportionate to their residual profit-sharing ratios. None of the partners is to invest additional cash, but they wish to distribute the lowest possible amount of cash.

Required:
Prepare a schedule of partners€™ accounts, showing balances at the end of 2008 before closing, the allocations of the net income for 2008, the cash distributed, and the closingbalances.

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Average Balances Balances 12/31/08 $70,000 21,800 Partner Hill Jones Vose $97,500 27,300 14,250 11,700k Debit balance