The following is the list of income and expense accounts of JJJ Partnership as of year-end December 31, 2020. P 7,500 50,000 8,000 300,000 10,000 Freight-in Merchandise Inventory, Jan. 1 Purchase Discount Purchases Rent Expense Sales Salaries and Wages Sales Discount Sales Returns and Allowances 800,000 90,000 12,000 4,500 Supplies Expenses Taxes and Licenses Expense Utilities Expense Additional information: Merchandise Inventory, Dec. 31 9,500 15,000 60,000 26,500 Required: 1. Prepare the income statement JJJ Partnership for the year-end December 31, 2020. 2. Net income or loss is divided equally among the three partners James, John, and Jude. 3. Income tax rate is at 20%.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Step by step
Solved in 2 steps
