Michael and George have been in partnership for several years, sharing profits and losses in
the ratio 3:4. At 1 January they had the following credit balances on their capital and current
accounts:
Capital $ Current $
Michael 65,000 11,486
Donald 80,000 9,637
The partnership statement of profit or loss for the year to 31 December shows a net profit of
$28,595, and the partners had made drawings of $16,500 each.
Required:
Calculate the balance of Michael’s current account at 31 December.