The following are taken from the accounting records of JFK Partnership. December 31, 2020 December 31, 2021 James, Capital Christine, Capital P54,900 P64,900 53,200 63,900 Lolly, Capital 44,890 50,890 The partnership generated net income of P51,600 in 2020. According to the partnership contract, James, Christine and Lolly share profit and loss equally. The partnership contract allows each partner to withdraw P1,000 monthly. James and Christine each contributed P5,000 during the year. Loll 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. Identify who among the partners it is.
The following are taken from the accounting records of JFK Partnership. December 31, 2020 December 31, 2021 James, Capital Christine, Capital P54,900 P64,900 53,200 63,900 Lolly, Capital 44,890 50,890 The partnership generated net income of P51,600 in 2020. According to the partnership contract, James, Christine and Lolly share profit and loss equally. The partnership contract allows each partner to withdraw P1,000 monthly. James and Christine each contributed P5,000 during the year. Loll 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. Identify who among the partners it is.
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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Transcribed Image Text:Problem 2: Statement of Changes in Equity - Partnership
The following are taken from the accounting records of JFK Partnership.
December 31, 2020
December 31, 2021
James, Capital
P54,900
P64,900
Christine, Capital
53,200
63,900
Lolly, Capital
44,890
50,890
The partnership generated net income of P51,600 in 2020. According to the partnership
contract, James, Christine and Lolly share profit and loss equally. The partnership
contract allows each partner to withdraw P1,000 monthly. James and Christine each
contributed P5,000 during the year. Loll 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. Identify who among the partners it is.
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