PARTNERSHIP - statement for Kingslee Company is shown below...

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PARTNERSHIP FINANCIAL STATEMENTS The financial statements of a partnership are similar to those of a corporation. The income statement for a partnership is identical to the income statement for a corporation except for the additional section that reports the division of net income, as shown earlier. The owners’ equity statement for a partnership is called the partners’ capital statement . Its function is to explain the changes in each partner’s capital account and in total partnership capital during the year. The partners’ capital
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Unformatted text preview: statement for Kingslee Company is shown below. It is based on the division of $22,000 of net income in Illustration H-5. The statement includes assumed data for the additional investment and drawings. The partners’ capital statement is prepared from the income statement and the partners’ capital and drawing accounts. The balance sheet for a partnership is the same as for a corporation except for the owner’s equity section. In a partnership, the capital balances of each partner are shown in the balance sheet....
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