This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: interest on partners’ capital, and the remainder on a fixed ratio. 4 Describe the form and content of partnership financial statements. The financial statements of a partnership are similar to those of a corporation. The principal differences are: (a) the division of net income is shown on the income statement, (b) the owners’ equity statement is called a partners’ capital statement, and (c) each partner’s capital is reported on the balance sheet. 5 Explain the effects of the entries to record the liquidation of a partnership. When a partnership is liquidated, it is necessary to record the (a) sale of noncash assets, (b) allocation of the gain or loss on realization, (c) payment of partnership liabilities, and (d) distribution of cash to the partners on the basis of their capital balances....
View Full Document
This note was uploaded on 11/08/2011 for the course ACCOUNTING ac 201 taught by Professor - during the Spring '11 term at Montgomery.
- Spring '11