1. Introduction: In partnership arrangements, income/loss earned by partnership firm is distributed amongst partner in the manner agreed upon. To determine : Table showing distribution of income of $450,000 as per three different plans. Table showing distribution of income of $450,000 as per three different plans: Income (Loss) Sharing Plan Calculations Bi Br Ba Total (a) $450,000 in 1:1:1 ratio i.e. 1/3 of 450,000 to be distributed equally 150,000 150,000 150,000 450,000 (b) $450,000 in Capital investment ratio i.e. 675:2625:4200 40,500 157,500 252,000 450,000 (c) Salary allowance - Total 230,000 80,000 60,000 90,000 230,000 Interest on 10% of investment 6,750 26,250 42,000 75,000 Balance $145,000 in 2:4:4 29,000 58,000 58,000 145,000 Total distribution 115,750 144,250 190,000 450,000 2. Introduction: In partnership arrangements, income/loss earned by partnership firm is distributed amongst partner in the manner agreed upon. To determine : Statement of partners’ equity showing the allocation of income. Statement of partners’ equity showing the allocation of income: Particulars Bi Br Ba Total Initial Capital Investment 67,500 262,500 420,000 750,000 Add: Salary allowances 80,000 60,000 90,000 230,000 Add: Interest on 10% of investment 6,750 26,250 42,000 75,000 Less: Balance i.e. (209,000-230,000-75000) in 2:4:4 ratio (19,200) (38,400) (38,400) (96,000) Less: Drawings (34,000) (48,000) (64,000) (146,000) Capital account balances at year end 101,050 262,350 449,600 813,000 3. Introduction: In partnership arrangements, income/loss earned by partnership firm is distributed amongst partner in the manner agreed upon. To determine : Journal entries for distribution of income and closure of withdrawals account. Journal entries for distribution of income and closure of with drawls account. Date Particulars Debit Amount ($) Credit Amount ($) Dec 31 Profit and loss account 209,000 To Bi Capital account 67,550 To Br Capital account 47,850 To Ba Capital account 93,600 (Being income earned distributed amongst partners as per plan C Dec 31 Bi Capital account 34,000 Br Capital account 48,000 Ba Capital account 64,000 To Drawings account 146,000 (Being drawings made debited to capital account of partner)

Connect Access Card for Financial Accounting: Information and Decisions

8th Edition

ISBN: 9781259662966

Author: John J Wild

Publisher: McGraw-Hill Education

See similar textbooks

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter D, Problem 2PSA

Chapter D, Problem 4PSA

Students have asked these similar questions

hello teacher please solve questions general accounting

Campbell Soup Company reported pension expense of $94 million and contributed $81.5 million to the pension fund. Prepare Campbell's journal entry to record pension expense and funding, assuming campbell has no OCI amounts.

Provide accounting question

Knowledge Booster

Similar questions

SEE MORE QUESTIONS

Recommended textbooks for you

Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
SWFT Comprehensive Vol 2020
Accounting
ISBN:9780357391723
Author:Maloney
Publisher:Cengage
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
SWFT Comprehensive Volume 2019
Accounting
ISBN:9780357233306
Author:Maloney
Publisher:Cengage
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT