Required: 1o. & 1b. Prepare journal entries to record the partners' initial capital investments and their subsequent cash withdrawals. 1c. Determine the partners' shares of income, and then prepare journal entries to close Income Summary and the partners withdrawals accounts. 2. Determine the balances of the partners' capital accounts as of December 31. Complete this question by entering your answers in the tabs below. Reg 1A Ind 18 Reg 1C Prepare journal entries to record the partners' initial capital investments and their subsequent cash withdrawals. View transaction list No 1 Date March 01 Reg 2 View journal entry worksheet Cash Eckert, Capital Land Building General Journal Debit 89,000 71,200 Credit
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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