ACCOUNTING-W/CENGAGENOWV2 ACCESS
ACCOUNTING-W/CENGAGENOWV2 ACCESS
26th Edition
ISBN: 9781305716780
Author: WARREN
Publisher: CENGAGE L
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Chapter 12, Problem 12.9EX

a.

To determine

Division of Partnership Income

Income and loss of partnership firm are divided among partners as per the partnership agreement. In case of no specification regarding division of income or loss in partnership agreement, income or loss are equally distributed. The common method of dividing partnership income is based on:

  • Service of the partners
  • Services and Investments of the partners

To prepare: The journal entry to record monthly partner drawing in the month of January

b.

To determine

To prepare: The journal entry to record closing entry of income summary account at the end of the year.

c.

To determine

To prepare: The journal entry to record closing entry of drawing account at the end of the year

d.

To determine

To explain: Why partner drawings be considered “reclaimable” until profits have been allocated?

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ACCOUNTING-W/CENGAGENOWV2 ACCESS

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