Profit Distribution for a Partnership

by Faith

For example if profit last year shows $21,600. Shall I distribute this to the partners A & B for the beginning of 2009 - therefore it is an addition to their capital investment? If yes what will be the double entry? If no, then I understand this will become a retained earnings and added to the profit this year, correct?


DRAWINGS:
If I don't distribute this to them in addition to their capital (this year they had some withdrawals from their profit last year) then what should my double entry be this year? Their capital investment last year is less than what they had drawn this year, so what shall I do in order for their record not to show overdrawn?

Thank you

Faith

Click here to post comments

Return to Ask a Question About This Lesson!.






Enjoying this Website?
Help Support it with a Donation

OR...





Advertise on ventoup.ru


Related pages


accountant bookdebtor accounting definitionfactory overhead cost formuladebits meaningcreditor definition in accountingunearned revenue is liabilityledgers in accountingcash flow direct method formulagood books on accountingsource document accounting definitionnike inventory methodaccounting concept definitionsteps to accounting cyclewhat is unadjusted trial balancecartage outwardshow to compute markup percentageprovision for bad debts journal entry effectwip materialexample of pro forma balance sheetperpetual inventory method definitionwac costreserve for bad debtsprofit and loss statement worksheetfifo manufacturingaccumulated losses in balance sheetdefine inventories in accountingassets liability and equitydoubtful antonymaverage inventory cost formulapetty cash receipt bookpreparing statement of cash flows indirect methodhow to calculate total stockholders equitycash flow spreadsheet exampledefine a creditorcost of goods sales formulahow to work vat backwardscalculating percentages backwardsaccounting journals and ledgersadvance expenses journal entryaccounts payable meaning with examplelifo perpetual inventory method exampledefine salarieddefinition of worksheet in accountingcash budgeting practice problemscogs formulabalance sheet format in excelaccounting cycle paperdebit latin meaninghow to work out gp percentagehow to calculate vat rateaccounting eqautionaccounting prepaid rentprices exclude vatdouble entry for fixed assetscompute the cost of goods manufacturedexplain accounting cycleexample of a general ledgerledger accounting examplewoner meaningsouth african vat ratecomputing cost of goods manufacturedbasic principles of accountancysimple average method of inventory valuationdefinition of asset accountingdefine accrual in accountingchange in stockholders equitycontra entry in accountingmeaning of bookkeeping in accountingjournal entry for credit saleswip formulaadjusting entries for dummiesperpetual inventory system definitionwhat does sbi stand fordistinguish between capital and revenue expenditureaccounting basics tutorial pdfaccounting words dictionaryformula for owners equitysundry creditors meaning