Partnership Financial Statements
Partnership financial statements are similar to those of other organizations. The
statement of partners’ equity Financial statement that shows total capital balances at the beginning of the period, any additional investment by partners, the income or loss of the period, the partners’ withdrawals, and the partners’ ending capital balances; also called statement of partners’ capital., also called
statement of partners’ capital, is one exception. It shows
each partner’s beginning capital balance, additional investments, allocated income or loss, withdrawals, and ending capital balance. To illustrate, Exhibit 12.3 shows the statement of partners’ equity for BOARDS prepared using the sharing agreement of Exhibit 12.1. Recall that BOARDS’ income was $70,000; also, assume that Zayn withdrew $20,000 and Perez $12,000 at year-end.
| EXHIBIT 12.3 | Statement of Partners’ Equity |  |
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The equity section of the balance sheet of a partnership usually shows the separate capital account balance of each partner. In the case of BOARDS, both K. Zayn, Capital, and H. Perez, Capital, are listed in the equity section along with their balances of $52,000 and $26,000, respectively.
 Decision Insight |  | Gambling Partners Trump Entertainment Resorts LP and subsidiaries operate three casino hotel properties in Atlantic City: Trump Taj Mahal Casino Resort (“Trump Taj Mahal”), Trump Plaza Hotel and Casino (“Trump Plaza”), and Trump Marina Hotel Casino (“Trump Marina”). Its recent statement of partners’ equity reports $1,020,000 in partners’ withdrawals, leaving $605,314,000 in partners’ capital balances.▪
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