Tarmac Roofing incurred a loss of $30,000 in 2020. Salary allowances of $2,000 a month for Douglas and $3,000 a month for Enderby were taken in cash at the end of each month. Neither partner withdrew any more cash from the partnership in 2020. Interest allowances are calculated at 8% based on the weighted average capital balances during the year, which were $29,000 for Douglas and $20,000 for Enderby. The remainder is shared 3:1. Their capital balances at the end of 2019 were $41,000 and $38,000 respectively. Once all the closing entries are completed, Calculate the ending capital balance for Douglas.

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To calculate the ending capital balance for Douglas we need to first calculate the partnerships net ... View the full answer