Concept explainers
Accounting for allocation of income and closing the withdrawals accounts:
The Accounting forallocation of income among partners shall be initiated through preparation of statement which reflects the allocation of income. The
The total share of income shall be computed by adding up all the three components as mentioned above for each respective partners and then entry is made by debiting the income summary and crediting the partners capital account for the respective amount of share of total profits.
The Withdrawals made during the year has been placed in the temporary account by the name of respective partner withdrawal account. The same need to be closed at the end of the year by transferring it to respective partners capital account by debiting the capital account and crediting the temporary account of withdrawals opened.
Requirement1:
TheJournal for closing the net income of firm.
Requirement2:
The
Requirement3:
The Ending balance of capital account to be computed.
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Chapter 12 Solutions
Horngren's Accounting, The Financial Chapters, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (11th Edition)
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