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Dividing Partnership Earnings Listed here are the net income and the method of dividing
Chapter 27, Problem 27-4(choose chapter or problem)
Dividing Partnership Earnings
Listed here are the net income and the method of dividing net income or net loss for several partnerships.
Instructions Use the form provided in your working papers to determine each partner’s share of the net income.
Analyze Identify the accounts affected when net income is distributed to the partners.
Questions & Answers
QUESTION:
Dividing Partnership Earnings
Listed here are the net income and the method of dividing net income or net loss for several partnerships.
Instructions Use the form provided in your working papers to determine each partner’s share of the net income.
Analyze Identify the accounts affected when net income is distributed to the partners.
ANSWER:Step 1 of 7
The distribution of income and losses in a partnership will credit the individual partner’s capital account and debit the income summary account in case of profits and vice versa in case of losses.