Prepare the partnership’s Statement of Changes in Equity for the year ended 2016. Determine if any of the partners violated the partnership contract provision on drawings.
3. Case 3:
The following are taken from the accounting records of JKL Partnership.
December 31, 2015 December 31, 2016
Joshua, Capital ₱54,900 ₱64,900
Karen, Capital 53,200 63,900
Leo, Capital 44,890 50,890
The partnership generated net income of ₱51,600 in 2016. According to the partnership
contract, Joshua, Karen, and Leo share
each partner to withdraw ₱1,000 monthly. Joshua and Karen each contributed ₱5,000 during
the year. Leo did not make any contributions during the year.
Requirements:
Prepare the partnership’s Statement of Changes in Equity for the year ended 2016.
Determine if any of the partners violated the partnership contract provision on
drawings.
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