On July 1, 2022, Alleya Amrick and Breanne Balas formed a partnership to make crafts and sell them online. Amrick Contribution (at formation on July 1 a $43,000 note payable was taken by the partners to purchase added equipment) Profit sharing Required 1. Prepare journal entries for the following dates: a. July 1, 2022 $100,000 cash $183,000 equipment 2013 $153,000 salary allowance 10% of original capital investments Balance 40% Balas $183,000 cash $140,000 equipment Cash withdrawal June 20, 2023 Net Income during the year was $410,000 and was in the Income Summary account. On July 1, 2023 Calla Cameron invested $123,000 and was admitted to the partnership for a 20% interest in equity. 10% of original capital investments Balance 60% $103,000
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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