1. Prepare a journal entry to share the profit among the partners. Include a narration.
2. Prepare journal entries to close the Drawings accounts to the partners' Current accounts. Include a single narration.
3. Prepare a statement of comprehensive income, showing allocation of profit.
4. Prepare a statement of changes in equity.
5. Prepare a partnership statement of financial position. (Statement format).
PART D You can choose whether to admit a new partner or have a partner retire.
Include a narrative as described below.
Admission of a new partner
1. Include in the narrative: Who is the new partner? What was he/she doing before? Why was he/she invited to join the partnership? How much is the new partner contributing and what will be his or her share of partnership equity? What is the new profit sharing agreement?
2. What was the equity of the partnership before admission of the new partner? (If it is the day after Part C it will be the same. If it is later it will be different. Ensure it is not long afterwards). Prepare a worksheet to show the calculation of the new partner's capital and any bonus to or from the existing partners.
3. Prepare a journal entry to admit the new partner. Include a narration.
4. What is the equity of each partner and of the partnership after the admission of the new partner?