Chapter 12: Accounting for Partnership (13E)

BE12.1 (Page 12 – 30) Barbara Ripley and Fred Nichols decide to organize the ALL-Star
partnership. Ripley invests $15,000 cash, and Nichols contributes $10,000 cash and equipment
having a book value of $3,500. Prepare the entry to record Nichols’s investment in the partnership,
assuming the equipment has a fair value of $4,000.
Solution –
Date Particulars Dr Cr
Cash 10,000
Equipment 4,000
Fred Nichols, Capital 14,000

BE12.3 (Page 12 – 31) Rod Dall Co. reports net income of $75,000. The income ratios are
Rod 60% and Dall 40%. Indicate the division of net income to each partner, and prepare the entry
to distribute the net income.
Solution –
Date Particulars Dr Cr
Income Summary 75,000
Rod, Capital ($75,000 × 60%) 45,000
Dall, Capital ($75,000 × 40%) 30,000

BE12.4 (Page 12 – 31) PFW Co. reports net income of $45,000. Partner salary allowances are
Pitts $15,000, Filbert $5,000, and Witten $5,000. Indicate the division of net income to each
partner, assuming the income ratio is 50:30:20, respectively.
Solution –
Pitts Filbert Witten Total
Salary allowance $15,000 $5,000 $5,000 $25,000
Remaining income, $20,000:
($45,000 – $25,000)
Pitts ($20,000 × 50%) 10,000
Filbert ($20,000 × 30%) 6,000
Witten ($20,000 × 20%) 000,000 4,000
Total remainder 20,000
Total division of net income $25,000 $11,000 $9,000 $45,000

BE12.5 (Page 12 – 31) Nabb & Fry Co. reports net income of $31,000. Interest allowances
are Nabb $7,000 and Fry $5,000, salary allowances are Nabb $15,000 and Fry $10,000, and the
remainder is shared equally. Show the distribution of income.

1
Solution –
Nabb Fry Total
Salary allowance $15,000 $10,000 $25,000
Interest allowance 7,000 5,000 12,000
Total salaries and interest 22,000 15,000 37,000
Remaining deficiency, ($6,000):
($31,000 – $37,0000)
Nabb ($6,000 × 50%) (3,000)
Fry ($6,000 × 50%) (3,000)
Total remainder (6,000)
Total division of net income $19,000 $12,000 $31,000

BE12.6 (Page 12 – 31) After liquidating noncash assets and paying creditors, account balances
in the Mann Co. are Cash $21,000; A, Capital (Cr.) $8,000; B, Capital (Cr.) $9,000; and C, Capital
(Cr.) $4,000. The partners share income equally. Journalize the final distribution of cash to the
partners.
Solution –

Date Particulars Dr Cr
A, Capital 8,000
B, Capital 9,000
C, Capital 4,000
Cash 21,000

BE12.7 (Page 12 – 31) Gamma Co. capital balances are Barr $30,000, Croy $25,000, and
Eubank $22,000. The partners share income equally. Tovar is admitted to the firm by purchasing
one-half of Eubank’s interest for $13,000. Journalize the admission of Tovar to the partnership.
Solution –

2
 Date Particulars Dr Cr
Eubank, Capital ($22,000 × ½) 11,000
Tovar, Capital 11,000

BE12.8 (Page 12 – 31) In Eastwood Co., capital balances are Irey $40,000 and Pedigo $50,000.
The partners share income equally. Vernon is admitted to the firm with a 45% interest by an
investment of cash of $58,000. Journalize the admission of Vernon.
Solution –
1. Determine the total capital of the new partnership.
Total capital of existing partnership ($40,000 + $50,000) $90,000
Investment by new partner, Vernon 58,000
Total capital of new partnership $148,000
2. Determine the new partner’s capital credit.
Total capital of new partnership $148,000
New partner’s ownership interest × 45%
New partner’s capital credit 66,600
3. Determine the amount of bonus.
New partner’s investment $58,000
New partner’s capital credit – 66,600
Bonus amount ($8,600)
Irey and Pedigo share income equally. ⇒ 50% – 50%

Date Particulars Dr Cr
Cash 58,000
Irey, Capital (50% × $8,600) 4,300
Pedigo, Capital (50% × $8,600) 4,300
Vernon, Capital (45% × $148,000) 66,600
(To record admission of Vernon and bonus to old partners)

BE12.9 (Page 12 – 31) Capital balances in Pelmar Co. are Lango $40,000, Oslo $30,000, and
Fernetti $20,000. Lango and Oslo each agree to pay Fernetti $12,000 from their personal assets.
Lango and Oslo each receive 50% of Fernetti’s equity. The partners share income equally.
Journalize the withdrawal of Fernetti.
Solution –

3
 Date Particulars Dr Cr
Fernetti, Capital 20,000
Lango, Capital 10,000
Oslo, Capital 10,000
(To record purchase of Fernetti’s interest)

E12.2 (Page 12 – 32) K. Decker, S. Rosen, and E. Toso are forming a partnership. Decker is
transferring $50,000 of personal cash to the partnership. Rosen owns land worth $15,000 and a
small building worth $80,000, which she transfers to the partnership. Toso transfers to the
partnership cash of $9,000, accounts receivable of $32,000, and equipment worth $39,000. The
partnership expects to collect $29,000 of the accounts receivable.
Instructions
(a). Prepare the journal entries to record each of the partners’ investments.
(b). What amount would be reported as total owners’ equity immediately after the
investments?
Solution –
(a) –
Date Particulars Dr Cr
Cash 50,000
Decker, Capital 50,000
Land 15,000
Buildings 80,000
Rosen, Capital 95,000
Cash 9,000
Accounts Receivable 32,000
Equipment 39,000
Allowance for Doubtful Accounts ($32,000 – $29,000) 3,000
Toso, Capital 77,000

4
(b) –
Decker, Capital $50,000
Rosen, Capital $95,000
Toso, Capital $77,000
Total Capital $222,000

E12.3 (Page 12 – 33) Suzy Vopat has owned and operated a proprietorship for several years.
On January 1, she decides to terminate this business and become a partner in the firm of Vopat and
Sigma. Vopat’s investment in the partnership consists of $12,000 in cash, and the following assets
of the proprietorship: accounts receivable $14,000 less allowance for doubtful accounts of $2,000,
and equipment $30,000 less accumulated depreciation of $4,000. It is agreed that the allowance
for doubtful accounts should be $3,000 for the partnership. The fair value of the equipment is
$23,500.
Instructions
Journalize Vopat’s admission to the firm of Vopat and Sigma.
Solution –
Date Particulars Dr Cr
Jan. 1 Cash 12,000
Accounts Receivable 14,000
Equipment 23,500
Allowance for Doubtful Accounts 3,000
Suzy Vopat, Capital (12,000 +14,000 + 23,500 – 3,000) 46,500

E12.4 (Page 12 – 33) McGill and Smyth have capital balances on January 1 of $50,000 and
$40,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries
of $22,000 for McGill and $13,000 for Smyth, (2) interest at 10% on beginning capital balances,
and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth.
Instructions
(a). Prepare a schedule showing the distribution of net income, assuming net income is
(1) $50,000 and (2) $36,000.
(b). Journalize the allocation of net income in each of the situations above.
Solution –

5
(a) (1) – McGill Smyth Total
Salary allowance $22,000 $13,000 $35,000
Interest allowance
McGill ($50,000 × 10%) 5,000
Smyth ($40,000 × 10%) 4,000
Total interest 9,000
Total salaries and interest 27,000 17,000 44,000
Remaining income, $6,000:
($50,000 – $44,000)
McGill ($6,000 × 60%) 3,600
Smyth ($6,000 × 40%) 2,400
Total remainder 6,000
Total division of net income $30,600 $19,400 $50,000

(a) (2) – McGill Smyth Total

Salary allowance $22,000 $13,000 $35,000
Interest allowance
McGill ($50,000 × 10%) 5,000
Smyth ($40,000 × 10%) 4,000
Total interest 9,000
Total salaries and interest 27,000 17,000 44,000
Remaining deficiency, ($8,000):
($36,000 – $44,000)
McGill ($8,000 × 60%) (4,800)
Smyth ($8,000 × 40%) (3,200)
Total remainder (8,000)
Total division of net income $22,200 $13,800 $36,000

(b) –
Date Particulars Dr Cr
(1) – Income Summary 50,000
McGill, Capital 30,600
Smyth, Capital 19,400

(2) – Income Summary 36,000

McGill, Capital 22,200
Smyth, Capital 13,800

6
E12.5 (Page 12 – 33) Coburn (beginning capital, $60,000) and Webb (beginning capital
$90,000) are partners. During 2020, the partnership earned net income of $80,000, and Coburn
made drawings of $18,000 while Webb made drawings of $24,000.
Instructions
(a). Assume the partnership income-sharing agreement calls for income to be divided 45% to
Coburn and 55% to Webb. Prepare the journal entry to record the allocation of net
income.
(b). Assume the partnership income-sharing agreement calls for income to be divided with a
salary of $30,000 to Coburn and $25,000 to Webb, with the remainder divided 45% to
Coburn and 55% to Webb. Prepare the journal entry to record the allocation of net
income.
(c). Assume the partnership income-sharing agreement calls for income to be divided with a
salary of $40,000 to Coburn and $35,000 to Webb, interest of 10% on beginning capital,
and the remainder divided 50% – 50%. Prepare the journal entry to record the allocation
of net income.
(d). Compute the partners’ ending capital balances under the assumption in part (c).
Solution –
Date Particulars Dr Cr
(a) – Income Summary 80,000
Coburn, Capital ($80,000 × 45%) 36,000
Webb, Capital ($80,000 × 55%) 44,000
(b) – Income Summary 80,000
Coburn, Capital [$30,000 + ($25,000 × 45%)] 41,250
Webb, Capital [$25,000 + ($25,000 × 55%)] 38,750
(c) – Income Summary 80,000
Coburn, Capital [$40,000 + $6,000 – ($10,000 × 50%)] 41,000
Webb, Capital [$35,000 + $9,000 – ($10,000 × 50%)] 39,000

(d) – Coburn Webb

Beginning Capital $60,000 $90,000
Add: Division of net income 41,000 39,000
101,000 129,000
Less: Drawings 18,000 24,000
Ending Capital $83,000 $105,000

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E12.6 (Page 12 – 33) For National Co., beginning capital balances on January 1, 2020, are
Nancy Payne $20,000 and Ann Dody $18,000. During the year, drawings were Payne $8,000 and
Dody $5,000. Net income was $40,000, and the partners share income equally.
Instructions
(a). Prepare the partners’ capital statement for the year.
(b). Prepare the owners’ equity section of the balance sheet at December 31, 2020.
Solution –
(a) –
NATIONAL CO.
Partners’ Capital Statement
For the Year Ended December 31, 2020
N. Payne A. Dody Total
Capital, January 1 20000 18000 38000
Add: Net income 20,000 20,000 40,000
40,000 38,000 78,000
Less: Drawings 8,000 5,000 13,000
Capital, December 31 32000 33000 65000

(b) –
NATIONAL CO.
Partial Balance Sheet
December 31, 2020
Owners’ equity
N. Payne, Capital $32,000
A. Dody, Capital 33,000
Total owners’ equity $65,000

E12.8 (Page 12 – 33) Sedgwick Company at December 31 has cash $20,000, noncash assets
$100,000, liabilities $55,000, and the following capital balances: Floyd $45,000 and DeWitt
$20,000. The firm is liquidated, and $105,000 in cash is received for the noncash assets. Floyd and
DeWitt income ratios are 60% and 40%, respectively.
Instructions
Prepare a schedule of cash payments.
Solution –

8
 SEDGWICK COMPANY
Schedule of Cash Payments
Noncash Floyd, DeWitt,
Item Cash + = Liabilities + +
Assets Capital Capital
Balances before liquidation $20,000 $100,000 $55,000 $45,000 $20,000
Sale of noncash assets and allocation of gain 105,000 (100,000) 3,000 2,000
New balances 125,000 0 (55,000) 48,000 22,000
Pay liabilities (55,000) (55,000)
New balances 70,000 0 0 48,000 22,000
Cash distribution to partners (70,000) ) (48,000) (22,000)
Final balances 0 0 0 0 0

E12.9 (Page 12 – 34) (Data for Sedgwick Company are presented in E12.8)
Sedgwick Company at December 31 has cash $20,000, noncash assets $100,000, liabilities $55,000, and the following capital balances:
Floyd $45,000 and DeWitt $20,000. The firm is liquidated, and $105,000 in cash is received for the noncash assets. Floyd and DeWitt
income ratios are 60% and 40%, respectively.
Sedgwick Company now decides to liquidate the partnership.
Instructions
Prepare the entries to record:
(a). The sale of noncash assets.
(b). The allocation of the gain or loss on realization to the partners.
(c). Payment of creditors.
(d). Distribution of cash to the partners.

9
Solution –
Date Particulars Dr Cr
(a) – Cash 105,000
Noncash Assets 100,000
Gain on Realization 5,000
(b) – Gain on Realization 5,000
Floyd, Capital ($5,000 × 60%) 3,000
DeWitt, Capital ($5,000 × 40%) 2,000
(c) – Liabilities 55,000
Cash 55,000
(d) – Floyd, Capital (45,000 + 3,000) 48000
DeWitt, Capital (20,000 + 2,000) 22000
Cash (48,000 + 22,000) 70,000

E12.12 (Page 12 – 34) S. Pagan and T. Tabor share income on a 6:4 basis. They have capital
balances of $100,000 and $60,000, respectively, when W. Wolford is admitted to the partnership.
Instructions
Prepare the journal entry to record the admission of W. Wolford under each of the following
assumptions.
(a). Investment of $90,000 cash for a 30% ownership interest with bonuses to the existing
partners.
(b). Investment of $50,000 cash for a 30% ownership interest with a bonus to the new partner.
Solution –
(a) –
1. Determine the total capital of the new partnership.
Total capital of existing partnership ($100,000 + $60,000) $160,000
Investment by new partner, Wolford 90,000
Total capital of new partnership $250,000
2. Determine the new partner’s capital credit.
Total capital of new partnership $250,000
New partner’s ownership interest × 30%
New partner’s capital credit 75,000

10
3. Determine the amount of bonus.
New partner’s investment $90,000
New partner’s capital credit – 75,000
Bonus amount $15,000
Pagan and Tabor share income in 6: 4 ratio

Date Particulars Dr Cr
Cash 90,000
6
𝑃𝑎𝑔𝑎𝑛, 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 ( × $15,000) 9,000
6+4
4
Tabor, 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 ( × $15,000) 6,000
6+4
Wolford, Capital (30% × $250,000) 75,000
(To record admission of Wolford and bonus to old partners)

(b) –
1. Determine the total capital of the new partnership.
Total capital of existing partnership ($100,000 + $60,000) $160,000
Investment by new partner, Wolford 50,000
Total capital of new partnership $210,000
2. Determine the new partner’s capital credit.
Total capital of new partnership $210,000
New partner’s ownership interest × 30%
New partner’s capital credit 63,000
3. Determine the amount of bonus.
New partner’s investment $50,000
New partner’s capital credit – 63,000
Bonus amount ($13,000)
Pagan and Tabor share income in 6: 4 ratio

Date Particulars Dr Cr
Cash 90,000
6
𝑃𝑎𝑔𝑎𝑛, 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 ( × $13,000) 7,800
10
4
Tabor, 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 ( × $13,000) 5,200
10
Wolford, Capital (30% × $210,000) 63,000
(To record admission of Wolford and bonus to old partners)

11
P12.1A (Page 12 – 35) The post-closing trial balances of two proprietorships on January 1,
2020, are presented below.
Sorensen Company Lucas Company
Dr. Cr. Dr. Cr.
Cash $14,000 $12,000
Accounts receivable 17,500 26,000
Allowance for doubtful accounts $3,000 $4,400
Inventory 26,500 18,400
Equipment 45,000 29,000
Accumulated depreciation – equipment 24,000 11,000
Notes payable 18,000 15,000
Accounts payable 22,000 31,000
Sorensen, capital 36,000
Lucas, capital 24,000
103,000 $103,000 $85,400 85,400

Sorensen and Lucas decide to form a partnership, Solu Company, with the following agreed upon
valuations for noncash assets.
Sorensen Company Lucas Company
Accounts receivable $17,500 $26,000
Allowance for doubtful accounts 4,500 4,000
Inventory 28,000 20,000
Equipment 25,000 15,000
All cash will be transferred to the partnership, and the partnership will assume all the liabilities of
the two proprietorships. Further, it is agreed that Sorensen will invest an additional $5,000 in cash,
and Lucas will invest an additional $19,000 in cash.
Instructions
(a). Prepare separate journal entries to record the transfer of each proprietorship’s assets and
liabilities to the partnership.
(b). Journalize the additional cash investment by each partner.
(c). Prepare a classified balance sheet for the partnership on January 1, 2020.
Solution –
(a) –

12
 Date Particulars Dr Cr
Jan.1 Cash 14,000
Accounts Receivable 17,500
Inventory 28,000
Equipment 25,000
Allowance for Doubtful Accounts 4,500
Notes Payable 18,000
Accounts Payable 22,000
Sorensen, Capital 40,000
(14,000 + 17,500 +28,000 + 25,000 – 4,500 – 18,000 – 22,000)

1 Cash 12,000
Accounts Receivable 26,000
Inventory 20,000
Equipment 15,000
Allowance for Doubtful Accounts 4,000
Notes Payable 15,000
Accounts Payable 31,000
Lucas, Capital 23,000
(12,000 + 26,000 +20,000 + 15,000 – 4,000 – 15,000 – 31,000)

(b) –
Date Particulars Dr Cr
Jan.1 Cash 5,000
Sorensen, Capital 5,000
1 Cash 19,000
Lucas, Capital 19,000

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(c) –
SOLU COMPANY
Balance Sheet
January 1, 2020
Assets
Current assets
Cash ($14,000 + $12,000 + $5,000 + $19,000) $50,000
Accounts receivable ($17,500 + $26,000) $43,500
Less: Allowance for doubtful accounts ($4,500 + $4,000) 8,500 35,000
Inventory ($28,000 + $20,000) 48,000
Total current assets 133,000
Property, plant, and equipment
Equipment ($25,000 + $15,000) 40,000
Total assets $173,000
Liabilities and Owners’ Equity
Current liabilities
Notes payable ($18,000 + $15,000) $33,000
Accounts payable ($22,000 + $31,000) 53,000
Total current liabilities 86,000
Owners’ equity
Sorensen, capital ($40,000 + $5,000) $45,000
Lucas, capital ($23,000 + $19,000) 42,000
Total owners’ equity 87,000
Total liabilities and owners’ equity $173,000

P12.1B The post-closing trial balances of two proprietorships on January 1, 2017, are presented
below.
Utech Company Flott Company
Dr. Cr. Dr. Cr.
Cash 10,000 8,000
Accounts receivable 18,000 30,000
Allowance for doubtful accounts 2,000 3,000
Inventory 35,000 20,000
Equipment 60,000 35,000
Accumulated depreciation – equipment 28,000 15,000

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 Utech Company Flott Company
Dr. Cr. Dr. Cr.
Notes payable 20,000
Accounts payable 30,000 40,000
Skorr, capital 43,000
Crane, capital 35,000
123,000 $123,000 93,000 93,000

Utech and Flott decide to form a partnership, Commander Company, with the following agreed
upon valuations for noncash assets.
Utech Company Flott Company
Accounts receivable $18,000 $30,000
Allowance for doubtful accounts 2,500 4,000
Inventory 38,000 25,000
Equipment 40,000 22,000
All cash will be transferred to the partnership, and the partnership will assume all the liabilities of
the two proprietorships. Further, it is agreed that Utech will invest an additional $3,500 in cash,
and Flott will invest an additional $16,000 in cash.
Instructions
(a). Prepare separate journal entries to record the transfer of each proprietorship’s assets and
liabilities to the partnership.
(b). Journalize the additional cash investment by each partner.
(c). Prepare a classified balance sheet for the partnership on January 1, 2017.
Solution –
(a) –
Date Particulars Dr Cr
Jan.1 Cash 10,000
Accounts Receivable 18,000
Inventory 38,000
Equipment 40,000
Allowance for Doubtful Accounts 2,500
Notes Payable 20,000
Accounts Payable 30,000
Utech, Capital 53,500
(10,000 + 18,000 +38,000 + 40,000 – 2,500 – 20,000 – 30,000)

15
 Date Particulars Dr Cr
1 Cash 8,000
Accounts Receivable 30,000
Inventory 25,000
Equipment 22,000
Allowance for Doubtful Accounts 4,000
Accounts Payable 40,000
Flott, Capital 41,000
(8000 + 30,000 +25,000 + 22,000 – 4,000 – 40,000)

(b) –
Date Particulars Dr Cr
Jan.1 Cash 3,500
Utech, Capital 3,500
1 Cash 16,000
Flott, Capital 16,000

(c) –
COMMANDER COMPANY
Balance Sheet
January 1, 2017
Assets
Current assets
Cash ($10,000 + $8,000 + $3,500 + $16,000) $37,500
Accounts receivable ($18,000 + $30,000) $48,000
Less: Allowance for doubtful accounts ($2,500 + $4,000) 6,500 41,500
Inventory ($38,000 + $25,000) 63,000
Total current assets 142,000
Property, plant, and equipment
Equipment ($40,000 + $22,000) 62,000
Total assets $204,000
Liabilities and Owners’ Equity
Current liabilities
Notes payable $20,000
Accounts payable ($30,000 + $40,000) 70,000

16
 Total current liabilities 90,000
Owners’ equity
Utech, capital ($53,500 + $3,500) $57,000
Flott, capital ($41,000 + $16,000) 57,000
Total owners’ equity 114,000
Total liabilities and owners’ equity $204,000

P12.3A (Page 12 – 36) The partners in Crawford Company decide to liquidate the firm when
the balance sheet shows the following.
Crawford Company
Balance Sheet
May 31, 2020
Assets Liabilities and Owners’ Equity
Cash $27,500 Notes payable $13,500
Accounts receivable 25,000 Accounts payable 27,000
Allowance for doubtful accounts (1,000) Salaries and wages payable 4,000
Inventory 34,500 A. Jamison, capital 33,000
Equipment 21,000 S. Moyer, capital 21,000
Accumulated depreciation—equipment (5,500) P. Roper, capital 3,000
101,500 101,500

The partners share income and loss 5:3:2. During the process of liquidation, the following
transactions were completed in the following sequence.
(1). A total of $51,000 was received from converting noncash assets into cash.
(2). Gain or loss on realization was allocated to partners.
(3). Liabilities were paid in full.
(4). P. Roper paid his capital deficiency.
(5). Cash was paid to the partners with credit balances.
Instructions
(a). Prepare the entries to record the transactions.
(b). Post to the cash and capital accounts.
(c). Assume that Roper is unable to pay the capital deficiency.
(d). Prepare the entry to allocate Roper’s debit balance to Jamison and Moyer.
(e). Prepare the entry to record the final distribution of cash.
Solution –

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(a) –
Date Particulars Dr Cr
(1) – Cash 51,000
Allowance for Doubtful Accounts 1,000
Accumulated Depreciation – Equipment 5,500
Loss on Realization* 23,000
Accounts Receivable 25,000
Inventory 34,500
Equipment 21,000
5
(2) – 𝐴. 𝐽𝑎𝑚𝑖𝑠𝑜𝑛, 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 ($23,000 × ) 11,500
5+3+2
3
𝑆. 𝑀𝑜𝑦𝑒𝑟, 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 ($23,000 × ) 6,900
5+3+2
3
𝑃. 𝑅𝑜𝑝𝑒𝑟, 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 ($23,000 × ) 4,600
5+3+2
Loss on Realization 23,000
(3) – Notes Payable 13,500
Accounts Payable 27,000
Salaries and Wages Payable 4,000
Cash 44,500
(4) – Cash 1,600
P. Roper, Capital ($4,600 – $3,000) 1,600
(5) – A. Jamison, Capital ($33,000 – $11,500) 21,500
S. Moyer, Capital ($21,000 – $6,900) 14,100
Cash 35,600

* Noncash assets (net) $74,000

Sale proceeds 51,000
Loss on sale of noncash assets $23,000

(b) –
Cash
Jan 1 Opening Balance $27,500 (3) 44,500
(1) 1,000 (5) 35,600
(4) 1,600
Dec. 31 Closing Balance $0

18
 A. Jamison, Capital
(2) 11,500 Jan 1 Opening Balance $33,000
(5) 21,500

Dec. 31 Closing Balance $0

S. Moyer, Capital
(2) 6,900 Jan 1 Opening Balance $ 21,,000
(5) 14,100

Dec. 31 Closing Balance $0

P. Roper, Capital
(2) 4,600 Jan 1 Opening Balance $ 3,000
(4) 1,600

Dec. 31 Closing Balance $0

(c) –
Date Particulars Dr Cr
5
(1) – 𝐴. 𝐽𝑎𝑚𝑖𝑠𝑜𝑛, 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 ($1,600 × ) 1,000
8
3
𝑆. 𝑀𝑜𝑦𝑒𝑟, 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 ($1,600 × ) 600
8
P. Roper, Capital 1,600
(2) – A. Jamison, Capital ($21,500 – $1,000) 20,500
S. Moyer, Capital ($14,100 – $600) 13,500
Cash ($35,600 – $1,600) 34,000

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