Introduction to Partnerships
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.
- 45% to Richards, 55% to Woods
- 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:
- net income of $50,000
- net loss of $30,000