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Paul and Justin began their partnership on 1 July 2015 by contributing $320000 and $280000 respectively. During the first year

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Paul and Justin began their partnership on 1 July 2015 by contributing $320000 and $280000 respectively. During the first year of business, Justin contributed another $40000 and Paul with¬drew $20000 of his capital investment. The profit for the year ended 30 June 2016 of $160000 was divided evenly between the partners. During the year Paul withdrew $25000 from profits and Justin withdrew $20 000 of his share of the profits.

Required
Prepare a statement of changes in partner’s equity for the year ended 30 June 2016 using both method 1 and method 2.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...

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Accounting

Accounting

ISBN: 978-1118608227

9th edition

Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett

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Question Details
Chapter # 15- PARTNERSHIPS: FORMATION, OPERATION AND REPORTING
Section: Exercises
Problem: 14
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Question Posted: June 24, 2019 11:27:55
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