Accounting Principles II: The Statement of Partners' Capital

The Statement of Partners' Capital

The statement of partners' capital shows the changes in each partner's capital account for the year or period being reported on. It has the same format as the statement of owner's equity except that it includes a column for each partner and a total column for the company rather than just one column. The statement starts with the beginning capital balance, followed by the amounts of investments made, share of net income or loss, and withdrawals made during the reporting period to determine the capital balance at the end of the period.

The Midland Connection Statement of Partners' Capital For the Year ended December 31, 20X0

	Minbiole, CPA	Kaschalk, CPA	Total Partnership
Capital balances, January 1, 20X0	$ 50,000	$ 100,000	$ 150,000
Add: Investments	25,000	10,000	35,000
Net Income	40,000	40,000	80,000
Less: Withdrawals	(45,000)	(30,000)	(75,000)
Capital balances, December 31, 20X0	$ 70,000	$ 120,000	$ 190,000

The $190,000 capital balance for the partnership at December 31, 20X0 would be the amount reported as owners' equity in The Midland Connection's balance sheet as of December 31, 20X0.