Chapter 5
Partnerships
226
b) Calculate the ending capital balance of each partner, assuming that method (ii) is used to
divide earnings.
A. Anna
P. Peter
J. Jackson
Beginning Capital Balance
Add:
Additional Contribution
Share of Net Income
Subtotal
Less:
Drawings
Ending Capital Balance
c) A. Anna, P. Peter and J. Jackson decide to receive a salary of $40,000, $55,000 and $45,000
respectively. The remaining earnings will be divided among each partner equally. During
2018, the company earned a net income of $149,000. Calculate the amount of net income
that each partner will receive.
Total
A. Anna
P. Peter
J. Jackson
Net Income
Salary
Remainder
Total Share
d) During 2018, A. Anna, P. Peter and J. Jackson withdrew $10,000, $15,000 and $12,000
respectively. Prepare the journal entries to record the drawings.
Date
Account Title and Explanation
Debit
Credit
e) Calculate the ending capital balance of each partner. The beginning balance for 2018 is
the ending value calculated in part b).
