Paul and Justin began their partnership on 1 July 2019 by contributing $320 000 and $280 000
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Paul and Justin began their partnership on 1 July 2019 by contributing $320 000 and $280 000 respectively. During the first year of business, Justin contributed another $40 000 and Paul withdrew $20 000 of his capital investment. The profit for the year ended 30 June 2020 of $160 000 was divided evenly between the partners. During the year Paul withdrew $25 000 from profits and Justin withdrew $20 000 of his share of the profits.
Required
Prepare a statement of changes in partners’ equity for the year ended 30 June 2020 using both method 1 and method 2.
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Related Book For
Financial Accounting
ISBN: 9780730363217
10th Edition
Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie, Andreas Hellmann, Jodie Maxfield
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