Question
2. Partnership The following are taken from the accounting records of JKL Partnership. December 31, 20x3 December 31, 20x4 Jaimie, Capital P54,900 P64,900 Kristine, Capital
2. Partnership
The following are taken from the accounting records of JKL Partnership.
December 31, 20x3 December 31, 20x4
Jaimie, Capital P54,900 P64,900
Kristine, Capital 53,200 63,900
Lally, Capital 44,890 50,890
The partnership generated net income of P51,600 in 20x4. According to the partnership contract, Jaimie, Kristine and LAlly share profit and loss equally. The partnership contract allows each partner to withdraw P1000 monthly, Jamie and Kristine each contributed P5000 during the year. Lally did not make any contributions during the year.
Required:
1. Prepare the Partnership's Statement of Changes in Equity.
2. Determine if any of the partners violated the partnership contract provision on drawings.
Answer the following :
1. Which form of business organization puts the least risk on its owners?
2. Increases in owner's equity without additional investment.
3. Decreases in equity aside from withdrawals of the owners.
4. A type of business that is owned by at least 2 persons.
5. In the Statement of Changes in Equity, the company had decreases in capital wherein income is distributed to owners. Identify the kind of business.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started