Question

A partners' capital statement explains the amount of legal liability of each of the partners. the types of assets invested in the business by each partner. how the partnership will be capitalized if a new partner is admitted to the partnership. the changes in each partner's capital account and in total partnership capital during a period.

Answer 1

the changes in each partner's capital account and in total partnership capital during a period.

Step-by-step explanation:

A partners' capital statement explains - the changes in each partner's capital account and in total partnership capital during a period (for an year or reported period).

The statement starts with balance of opening capital, increased by additional capital, share of profit etc & decreased by drawings, share of loss etc. These all adjustments & extra adjustments for goodwill adjustment, reserve distribution etc - gets us final closing capital.