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Razul and Amy decided to start a partnership called SA Consulting on January 1, 2020. Each of them contributed a number of items to the partnership, which are listed below. All tangible assets are listed at their market value.
									2020
										Razul			Amy
	Cash	$40,000		Cash		$60,000
	Equipment	190,000		Furniture		70,000
	Bank Loan	80,000		Accounts Payable		30,000
		$150,000				$100,000
On March 1, Razul and Amy added a new partner to the business, Sheila. Sheila will contribute $100,000 and receive a 35% share of the business. Use the capital balances from January 1 to determine any bonuses. Assume the existing partners will split any bonus evenly.
									100000	35	122500
									On December 31, 2020, Razul and Amy withdrew $20,000 and $15,000 respectively and during the year the business reported a net income of $400,000. Their partnership agreement provided for sharing of net income (loss) on the following basis:
1. Salary of $60,000 is allocated to Razul, $50,000 to Amy, and $20,000 to Sheila.
2. Interest is allocated at 7% of each partner's opening capital balance.
3. Remainder is shared where Razul gets 40%, Amy gets 25%, and Sheila gets 35%.
	400000	60000	50000	70000	40	25	35	7

b) Prepare a schedule showing the changes in capital and ending capital balances after the admission of Sheila.
				Razul	Amy	Sheila	Total

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