Partnership Accounting For Allocation Of Profit Loss (Beg/End of Period, Weighted Avg)

Описание: Partnership profit (loss) allocation based on capital invested by each partner (capital account), capital invested in partnership by each partner is the basis for allocating (dividing up) any profit or loss of the partnership, first explains what the partnership agreement should specify, (1) when the capital balances are determined, (2) allocation based on either (a) beginning of period capital balances, (b) end of period capital balances, or (c) weighted average capital balances, (3) rate of interest (rate of return) required on the capital investment and (4) profit or loss allocation ratio (percent allocation between partners), example shows capital accounts for partners and the change in the capital account and how the capital investment for allocation based on (1) beginning capital, (2) ending capital and (3) weighted average capital would be used to allocate profit and losses, showing the calculations in table form for each method of capital allocation and the applying the specified interest rate and profit loss ratio to determine each partners share of profit, examples and calculations by Allen Mursau