
Concept explainers
a.
Allocation of
Partner’s capital account:the balance in capital account represents the partner’s share of partnership’s net assets. A partners initial investment and any subsequent capital contributions, share of profits and any withdrawals of capital are recorded in partner’s capital account. Each partner has one capital account, which usually has a credit balance, but may have a debit balance because partner’s share of loss and withdrawals exceeds the capital contribution and share in profits. A deficiency is usually eliminated by additional capital contributions.
The preparation of income distribution schedule.
b.
Allocation of profit and loss to partners: Allocation of profit and loss to partners will be in accordance with partnership agreement. If the entity does not have formal partnership agreement, section 401 of the UPA 1997 indicates that profit and losses are distributed equally among partners. Profit distributions are not included in the partnership’s income statement, but recorded directly into partner’s capital accounts, not treated as expense items.
Partner’s capital account: the balance in capital account represents the partner’s share of partnership’s net assets. A partners initial investment and any subsequent capital contributions, share of profits and any withdrawals of capital are recorded in partner’s capital account. Each partner has one capital account, which usually has a credit balance, but may have a debit balance because partner’s share of loss and withdrawals exceeds the capital contribution and share in profits. A deficiency is usually eliminated by additional capital contributions.
The preparation statement of partner’s capital.
c.
Allocation of profit and loss to partners: Allocation of profit and loss to partners will be in accordance with partnership agreement. If the entity does not have formal partnership agreement, section 401 of the UPA 1997 indicates that profit and losses are distributed equally among partners. Profit distributions are not included in the partnership’s income statement, but recorded directly into partner’s capital accounts, not treated as expense items.
Partner’s capital account: the balance in capital account represents the partner’s share of partnership’s net assets. A partners initial investment and any subsequent capital contributions, share of profits and any withdrawals of capital are recorded in partner’s capital account. Each partner has one capital account, which usually has a credit balance, but may have a debit balance because partner’s share of loss and withdrawals exceeds the capital contribution and share in profits. A deficiency is usually eliminated by additional capital contributions.
The preparation of income distribution schedule where salaries for A is $30,000 and J is $35,000

Want to see the full answer?
Check out a sample textbook solution
Chapter 15 Solutions
EBK ADVANCED FINANCIAL ACCOUNTING
- Henderson Manufacturing produces a product with the following standard costs: • Direct materials: 3.5 liters per unit at $9.00 per liter Direct labor: 0.6 hours per unit at $18.50 per hour Variable overhead: 0.6 hours per unit at $6.50 per hour The company produced 3,800 units in June, using 13,600 liters of direct material and 2,320 direct labor hours. During the month, the company purchased 14,000 liters of direct material at $9.20 per liter. The actual direct labor rate was $18.80 per hour, and the actual variable overhead rate was $6.50 per hour. The company applies variable overhead on the basis of direct labor hours. The direct materials purchase variance is computed at the time of purchase. Compute the materials quantity variance for June.arrow_forwardGet correct solution this general accounting question please answer do fastarrow_forwardThe predetermined overhead rate per direct labor will bearrow_forward
- Don't use ai given answer general accounting questionarrow_forwardHello tutor please help me this problemarrow_forwardAllu is a salaried employee who normally works a 37-hour week and is paid a weekly salary of $675.00. The agreement that he has with his employer states that his salary is to cover all hours worked up to and including 40. This week, Caplan worked 42 hours. Calculate his gross pay.arrow_forward
- College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeFinancial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
- Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage LearningFinancial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning



