Tyson Tapestries is an unincorporated partnership formed by Brenda Tyson, Rhonda Lentil, and Constance Cummings. They contributed initial capital of $90,000, $60,000 and $40,000 respectively. During the year Brenda contributed an additional $10,000 and withdraw $13,250 from her capital account. Net income was $100,000 and income is distributed to the partners in the ratio of their capital contributions. Required 1: What is the balance of the equity account of Brenda Tyson in the year end financial statements? Required 2: What is the balance of the capital account of Rhonda Lentil in the year end financial statements? Required 3: What is the balance of the capital account of Constance Cummings in the year end financial statements?
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.
Tyson Tapestries is an unincorporated
Required 1: What is the balance of the equity account of Brenda Tyson in the year end financial statements? Required 2: What is the balance of the capital account of Rhonda Lentil in the year end financial statements? Required 3: What is the balance of the capital account of Constance Cummings in the year end financial statements?
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