Glencoe Accounting

Chapter 27: Introduction to Partnerships

Homework Practice

Division of Net Income/Net Loss

Partners Joshua Richards and David Woods are considering the following agreements for the division of net income/net loss.

  1. 45% to Richards, 55% to Woods
  2. Equally
  3. Based on initial capital investments of $60,000 for Richards and $90,000 for Woods.


Download the general journal form by clicking on Accounting Forms from the Student Center. For each agreement stated above, prepare the journal entries to divide net income/net loss between the partners:

  1. net income of $50,000
  2. net loss of $30,000
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