Each of the following is used in preparing the partners' capital statement except the

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The balance sheet is not used in preparing the partners' capital statement. The partners' capital statement is primarily derived from the income statement (to allocate net income or loss), partners' capital accounts (to track each partner's equity in the firm), and partners' drawing accounts (to account for withdrawals by partners). The balance sheet provides a snapshot of the company's financial position at a point in time and does not directly contribute to the preparation of the partners' capital statement.

Each of the Following Is Used in Preparing the Partners