During the fiscal year ended November 30, 2014, the profit for Scrimger & Woods Partnership was $84,000.

Question:

During the fiscal year ended November 30, 2014, the profit for Scrimger & Woods Partnership was $84,000. The partners, A. Scrimger, and D. Woods, share profit and loss in a 3:5 ratio, respectively.

(a) Calculate the division of profit to each partner.

(b) Prepare entries to close the income summary and drawings accounts assuming the partners withdrew $35,000 each during the year.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...