ACCT B8008 Lecture Notes - Lecture 8: Capital Account, General Journal, Net Income

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30 Apr 2016
Department
Professor
MR/ MOHAMMED EZZAT 
01063936420
1
Dividing net income & net loss:-- 
@@ partners equally share partnership net income or net loss unless the partnership contract indicates otherwise.
(income ratio & loss ratio) (profit & loss ratio)
@@ the partnership recognize a partner's share of net income or net loss in the accounts through closing entries ...
closing entries:-
@@ partnership must make four entries in preparing closing entries :- the entries as follows@@
1- To close the revenue of partnership:-
Debit each revenue account for its balance & credit income summary (total revenue)..
General journal:-
Revenue
Income summary
××
××
2- To close the expense of partnership:-
Debit income summary for total expenses & credit each expense account for its balance..
General journal:-
Income summary
expense
××
××
3- to close capital account for each partners:-
there are two cases:- A- Net income (profit).. B- Net loss..
A- in case of net income:
debit income summary for its balance & credit each partner's capital account for his share of net income…
General journal:-
Income summary
Partner's capital
××
××
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