Accounting for allocation of income and closing the withdrawals accounts: The Accounting forallocation of income among partners shall be initiated through preparation of statement which reflects the allocation of income. The partnership agreement may provide for salary, interest and sharing ratio. In such cases, firstly allowance for salary shall be provided among the partners and then interest shall be allocated among the partners on the basis of rate and capital balances of partners in the beginning of the year. The net amount remaining shall be distributed among the partners on the basis of sharing ratio. The total share of income shall be computed by adding up all the three components as mentioned above for each respective partners and then entry is made by debiting the income summary and crediting the partners capital account for the respective amount of share of total profits. The Withdrawals made during the year has been placed in the temporary account by the name of respective partner withdrawal account. The same need to be closed at the end of the year by transferring it to respective partners capital account by debiting the capital account and crediting the temporary account of withdrawals opened. Requirement1: TheJournal for closing the net income of firm.

Question

Want to see the full answer?

Answer 1

Question

Chapter 12, Problem E12.18E

To determine

Accounting for allocation of income and closing the withdrawals accounts:

The Accounting forallocation of income among partners shall be initiated through preparation of statement which reflects the allocation of income. The partnership agreement may provide for salary, interest and sharing ratio. In such cases, firstly allowance for salary shall be provided among the partners and then interest shall be allocated among the partners on the basis of rate and capital balances of partners in the beginning of the year. The net amount remaining shall be distributed among the partners on the basis of sharing ratio.

The total share of income shall be computed by adding up all the three components as mentioned above for each respective partners and then entry is made by debiting the income summary and crediting the partners capital account for the respective amount of share of total profits.

The Withdrawals made during the year has been placed in the temporary account by the name of respective partner withdrawal account. The same need to be closed at the end of the year by transferring it to respective partners capital account by debiting the capital account and crediting the temporary account of withdrawals opened.

Requirement1:

TheJournal for closing the net income of firm.

To determine

Requirement2:

The Journal entry for closing the withdrawals accounts.

To determine

Requirement3:

The Ending balance of capital account to be computed.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Findout solution for this general account query.

Please need help with this general accounting question

Compute the manufacturing overhead rate for the year of this accounting question?

Answer 2

Question

Chapter 12, Problem E12.18E

To determine

Accounting for allocation of income and closing the withdrawals accounts:

The Accounting forallocation of income among partners shall be initiated through preparation of statement which reflects the allocation of income. The partnership agreement may provide for salary, interest and sharing ratio. In such cases, firstly allowance for salary shall be provided among the partners and then interest shall be allocated among the partners on the basis of rate and capital balances of partners in the beginning of the year. The net amount remaining shall be distributed among the partners on the basis of sharing ratio.

The total share of income shall be computed by adding up all the three components as mentioned above for each respective partners and then entry is made by debiting the income summary and crediting the partners capital account for the respective amount of share of total profits.

The Withdrawals made during the year has been placed in the temporary account by the name of respective partner withdrawal account. The same need to be closed at the end of the year by transferring it to respective partners capital account by debiting the capital account and crediting the temporary account of withdrawals opened.

Requirement1:

TheJournal for closing the net income of firm.

To determine

Requirement2:

The Journal entry for closing the withdrawals accounts.

To determine

Requirement3:

The Ending balance of capital account to be computed.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 12, Problem E12.18E

To determine

Accounting for allocation of income and closing the withdrawals accounts:

The Accounting forallocation of income among partners shall be initiated through preparation of statement which reflects the allocation of income. The partnership agreement may provide for salary, interest and sharing ratio. In such cases, firstly allowance for salary shall be provided among the partners and then interest shall be allocated among the partners on the basis of rate and capital balances of partners in the beginning of the year. The net amount remaining shall be distributed among the partners on the basis of sharing ratio.

The total share of income shall be computed by adding up all the three components as mentioned above for each respective partners and then entry is made by debiting the income summary and crediting the partners capital account for the respective amount of share of total profits.

The Withdrawals made during the year has been placed in the temporary account by the name of respective partner withdrawal account. The same need to be closed at the end of the year by transferring it to respective partners capital account by debiting the capital account and crediting the temporary account of withdrawals opened.

Requirement1:

TheJournal for closing the net income of firm.

To determine

Requirement2:

The Journal entry for closing the withdrawals accounts.

To determine

Requirement3:

The Ending balance of capital account to be computed.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 12, Problem E12.18E

To determine

Accounting for allocation of income and closing the withdrawals accounts:

The Accounting forallocation of income among partners shall be initiated through preparation of statement which reflects the allocation of income. The partnership agreement may provide for salary, interest and sharing ratio. In such cases, firstly allowance for salary shall be provided among the partners and then interest shall be allocated among the partners on the basis of rate and capital balances of partners in the beginning of the year. The net amount remaining shall be distributed among the partners on the basis of sharing ratio.

The total share of income shall be computed by adding up all the three components as mentioned above for each respective partners and then entry is made by debiting the income summary and crediting the partners capital account for the respective amount of share of total profits.

The Withdrawals made during the year has been placed in the temporary account by the name of respective partner withdrawal account. The same need to be closed at the end of the year by transferring it to respective partners capital account by debiting the capital account and crediting the temporary account of withdrawals opened.

Requirement1:

TheJournal for closing the net income of firm.

To determine

Requirement2:

The Journal entry for closing the withdrawals accounts.

To determine

Requirement3:

The Ending balance of capital account to be computed.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 12, Problem E12.18E

To determine

Accounting for allocation of income and closing the withdrawals accounts:

The Accounting forallocation of income among partners shall be initiated through preparation of statement which reflects the allocation of income. The partnership agreement may provide for salary, interest and sharing ratio. In such cases, firstly allowance for salary shall be provided among the partners and then interest shall be allocated among the partners on the basis of rate and capital balances of partners in the beginning of the year. The net amount remaining shall be distributed among the partners on the basis of sharing ratio.

The total share of income shall be computed by adding up all the three components as mentioned above for each respective partners and then entry is made by debiting the income summary and crediting the partners capital account for the respective amount of share of total profits.

The Withdrawals made during the year has been placed in the temporary account by the name of respective partner withdrawal account. The same need to be closed at the end of the year by transferring it to respective partners capital account by debiting the capital account and crediting the temporary account of withdrawals opened.

Requirement1:

TheJournal for closing the net income of firm.

To determine

Requirement2:

The Journal entry for closing the withdrawals accounts.

To determine

Requirement3:

The Ending balance of capital account to be computed.

Answer 6

Chapter 12, Problem E12.18E

To determine

Accounting for allocation of income and closing the withdrawals accounts:

The Accounting forallocation of income among partners shall be initiated through preparation of statement which reflects the allocation of income. The partnership agreement may provide for salary, interest and sharing ratio. In such cases, firstly allowance for salary shall be provided among the partners and then interest shall be allocated among the partners on the basis of rate and capital balances of partners in the beginning of the year. The net amount remaining shall be distributed among the partners on the basis of sharing ratio.

The total share of income shall be computed by adding up all the three components as mentioned above for each respective partners and then entry is made by debiting the income summary and crediting the partners capital account for the respective amount of share of total profits.

The Withdrawals made during the year has been placed in the temporary account by the name of respective partner withdrawal account. The same need to be closed at the end of the year by transferring it to respective partners capital account by debiting the capital account and crediting the temporary account of withdrawals opened.

Requirement1:

TheJournal for closing the net income of firm.

Answer 7

Chapter 12, Problem E12.18E

To determine

Accounting for allocation of income and closing the withdrawals accounts:

The Accounting forallocation of income among partners shall be initiated through preparation of statement which reflects the allocation of income. The partnership agreement may provide for salary, interest and sharing ratio. In such cases, firstly allowance for salary shall be provided among the partners and then interest shall be allocated among the partners on the basis of rate and capital balances of partners in the beginning of the year. The net amount remaining shall be distributed among the partners on the basis of sharing ratio.

The total share of income shall be computed by adding up all the three components as mentioned above for each respective partners and then entry is made by debiting the income summary and crediting the partners capital account for the respective amount of share of total profits.

The Withdrawals made during the year has been placed in the temporary account by the name of respective partner withdrawal account. The same need to be closed at the end of the year by transferring it to respective partners capital account by debiting the capital account and crediting the temporary account of withdrawals opened.

Requirement1:

TheJournal for closing the net income of firm.

Answer 8

To determine

Requirement2:

The Journal entry for closing the withdrawals accounts.

Answer 9

To determine

Requirement2:

The Journal entry for closing the withdrawals accounts.

Answer 10

To determine

Requirement3:

The Ending balance of capital account to be computed.

Answer 11

To determine

Requirement3:

The Ending balance of capital account to be computed.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 12 - Prob. 1QC Ch. 12 - Prob. 2QC Ch. 12 - Prob. 3QC Ch. 12 - Which financial statement shows the changes in...Ch. 12 - Prob. 5QC Ch. 12 - Prob. 6QC Ch. 12 - Prob. 7QC Ch. 12 - Peter and Steve admit Meredith to their...Ch. 12 - Prob. 9QC Ch. 12 - Prob. 10QC

Concept explainers

Requirement2:

The Journal entry for closing the withdrawals accounts.

Requirement3:

The Ending balance of capital account to be computed.

Want to see the full answer?

Chapter 12 Solutions

Concept explainers

Requirement2: The Journal entry for closing the withdrawals accounts.

Requirement3: The Ending balance of capital account to be computed.

Want to see the full answer?

Chapter 12 Solutions

Requirement2:

The Journal entry for closing the withdrawals accounts.

Requirement3:

The Ending balance of capital account to be computed.