Question

In: Accounting

Could you give us an example of the journal entry for cash distribution to three partners...

Could you give us an example of the journal entry for cash distribution to three partners assuming equal distribution?

Solutions

Expert Solution

Assume there is 3 Partner namely A,B & C and there profit sharing ratio is equal
Assume there is Net earning available for distribution or Cash available for distribution is $ 300,000
Now, We have to distributed these $ 300,000 in equal proportion to all three partners A,B & C
Cash Availabe for Distribution = $               3,00,000
Divide by 3 "/" by 3
Amount given to Each partner is $ 300,000 / 3 = $               1,00,000 to each partner
Journal entry for the same is posted as below,
Journal Entries
Date Account Title and explanation Debit (Amt. In Million) Credit (Amt. In Million)
Partner A's Capital Account $               1,00,000
Partner B's Capital Account $               1,00,000
Partner C's Capital Account $               1,00,000
         To Cash $                 3,00,000
(To record the cash distribution to each partner)

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Give an example of an adjusting journal entry for each of the following transactions. Provide three...
Give an example of an adjusting journal entry for each of the following transactions. Provide three correct responses: Equal growth of an expense and a liability: Earning of revenue that was previously recorded as unearned revenue: Equal growth of an asset and revenue: Increase in an expense and decrease in an asset:
What is the purpose of a Petty Cash Fund? Provide an example journal entry that a...
What is the purpose of a Petty Cash Fund? Provide an example journal entry that a company might use to set up a Petty Cash Fund. Additionally, provide two example journal entries of payments from the Petty Cash Fund AND one example journal entry example to replenish the balance in the Fund.
What is the purpose of a Petty Cash Fund? Provide an example journal entry that a...
What is the purpose of a Petty Cash Fund? Provide an example journal entry that a company might use to set up a Petty Cash Fund. Additionally, provide two example journal entries of payments from the Petty Cash Fund AND one example journal entry example to replenish the balance in the fund.
Give an example of an adjusting journal entry for each of the following transactions- Equal growth...
Give an example of an adjusting journal entry for each of the following transactions- Equal growth of an expense and a liability. Earning of revenue that was previously recorded as unearned revenue. Equal growth of an asset and revenue. Increase in an expense and decrease in an asset.
9.) What are the three important dates for a cash dividend? What is the journal entry...
9.) What are the three important dates for a cash dividend? What is the journal entry required for each date? What is the overall impact of a cash dividend on the accounting equation (assets = liabilities + stockholders' equity)? 10.) Calculate net cash provided by operating activities. 11.) Name the 3 major business activities and be able to identify which activities belong to each category. 12.) Prepare an Income Statement, Statement of Stockholders' Equity, Balance Sheet and Statement of Cash...
How do closing entries simplify recordkeeping? Give an example of an adjusting entry that could is...
How do closing entries simplify recordkeeping? Give an example of an adjusting entry that could is closed. :) .
Name three properties of a normal distribution. Give an original example of a normal distribution in...
Name three properties of a normal distribution. Give an original example of a normal distribution in "real life". Plesae type instead of writing
Give an example of one situation that you are acquainted with that could be construed as...
Give an example of one situation that you are acquainted with that could be construed as an example of age discrimination. Explain how, if at all, the possible remedies for age discrimination provided in the text could have avoided the situation described in your example.
give three example of how can the Income Inequality Gap in the US be Improved?
give three example of how can the Income Inequality Gap in the US be Improved?
how would you record the following transcation as a journal entry? Received cash for a delivery...
how would you record the following transcation as a journal entry? Received cash for a delivery to be made in 60 days in the amount of $1,600.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT