Exam 19: Accounting for Partnerships

Partnership net income of $33,000 is to be divided between two partners,Elan Chan and Roy Anderson,according to the following arrangement: There will be salary allowances of $20,000 for Chan and $10,000 for Anderson,with the remainder divided equally.How much of the net income will be distributed to Chan and Anderson,respectively?

Winchester,Wesson & Smith are dissolving their partnership.Their agreement allocates profits and losses 40:30:30 respectively.The ending capital balances are Winchester $45,000;Wesson $25,000 and Smith $13,000.After all assets are liquidated and liabilities paid,there is $12,000 in cash to be distributed.Smith's share of the excess cash is

If a partnership's salary and interest allowances are in excess of the net income,the entry to close Income Summary after the allowances are recorded will include a(n)____________________ to Income Summary.

The dissolution of a partnership and the formation of a new partnership may have no noticeable effect on the continuing operations of the business.

Amounts withdrawn by partners to pay personal living expenses are recorded in their ____________________ accounts.

The entry to record a partner's interest allowance includes a debit to the ____________________ account.