Definition Definition

Partners’ capital statement

Definition (1):

Partners’ capital statement is the owner’s equity statement for a partnership that shows the changes in each partner’s capital account and total partnership capital during the year.

The statement includes assumed data for additional investment and drawings. The partnership prepares this statement from the income statement and the partners' capital and drawing accounts.

Definition (2):

Partners’ capital statement or the statement of partner’s capital depicts the alterations in every partner’s capital account for the reporting period or the year. Its format is the same as the owner’s equity statement except that it consists of a column for every partner and a total column for the business instead of having just a single column. This statement begins with the starting capital balance, followed by the made investments’ amount, net income’s or loss’s share, and withdrawals made throughout the reporting period for determining the capital balance at the period’s end.

Definition (3):

Partners’ capital statement refers to a financial report representing the alterations in total partner’s capital accounts throughout an accounting period. Or, it is a financial statement reporting the expansions and contractions in the partner’s accounts over a reporting period.

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