What is Statement of Owner's Equity Partnership - Format - Example

A Statement of Owner’s Equity Partnership is prepared for partnership’s business and it provides information about capital of each partner, the share of income / profits and losses of each partner, their additional investments and withdrawals from the business. It is the same as in case of Sole Proprietorship where the Statement of Owner’s Equity is prepared, but only the difference is that we, firstly, calculate owner’s equity of each of partners separately and then add the owner’s equity of each of the partners in order to calculate the total of owners’ equity of the business.

Format of Statement of Owner’s Equity Partnership:

Example:

                                                                        ABC Company

                                                              Statement of Owners’ Equity

                                                        For the Year Ended 31^st December, 2020

 

 

Mr. A                                             Rs.               Rs.                        Rs.

Opening Capital                                            50000

 

+ Net Income (50% Share)     28000

+ Additional Capital                 7000

- Drawings                                  9000

                                                     ______         

Net Increase in Capital                                  24000

                                                                         ________ 

Ending Capital                                                                               94000

Mr. B

Opening Capital                                               40000

+ Net Income (50% Share)         28000

+ Additional Capital                    3000

- Drawings                                   4000

                                                     ______

Net Increase in Capital                                    27000                                                                                                                                                                                                              _______

Ending Capital                                                                                  67000

                                                                                                           ________

Total Owners’ Equity                                                                       161000

                                                                                                           ________

                                                                                                           ________

 

Mr. A and Mr. B share income and loss equally. The initial investment made by Mr. A is Rs. 50000 and Mr. B is Rs. 40000. Mr. A and Mr. B made an additional investment of Rs. 7000 and Rs. 3000 respectively.

Mr. A withdrew Rs. 9000 and Mr. B withdrew Rs. 4000 as drawings from business their own personal use.

So in this way, the total owners’equity is obtained by adding the ending capital of both of the partners Mr. A and Mr. B which is Rs. 161000.