Bonny and Clyde Divide a Profit of $15 700

question 6

Essay

Bonny and Clyde divide a profit of $15 700. If Clyde is to receive $4200 more than one-fifths of Bonny's share, how much will Bonny receive?

---

Definitions:

Owner's Capital Account

An equity account on the balance sheet representing the owner's total investment in the business minus any withdrawals.

Temporary Accounts

Accounts that are closed at the end of each accounting period; examples include revenue, expense, and dividend accounts.

Owner's Capital Account

An account that represents the total equity or ownership interest of the owner(s) in a business, reflecting contributions and withdrawals.

Closing Entries

Entries recorded at the conclusion of an accounting cycle to shift balances from temporary to permanent accounts.