5. Allison and Josh are partners in a business. Allison's capital is $20,000 and Josh's capital is $30,000. Profits for the year are $60,000. They agree to share profits and losses as follows: Allison 14,000 10% 2/5 Josh $20,000 10% 3/5 Salaries Interest on capital Remaining profits and losses Allison's share of the profit is: A. $16,000 B. $24,000 C. $24,400 D. $30,000 E. None of the above. Kelly withdrew from the partnership of Kelly, Celeste & Nathan. The partners shared income and losses in a ratio of 2:2:1, respectively. Kelly's capital balance was $18,000 but she accepted $15,000 cash. The entry would be: 6. Debit Cash $15,000; credit Nathan Capital $15,000. debit Nathan Capital $15,000; credit Cash $15,000. debit Kelly Capital $18,000; credit Cash $15,000; credit Celeste capital $2,000; credit Nathan Capital $1,000. Debit Cash $15,000, credit Nathan Capital $1,000, debit Celeste Capital $2,000; credit Kelly Capital $18,000. None of the above. A. B. C. D. E. Emily and Megan are partners in a business. Emily's capital is $20,000 and Megan's capital is $30,000. Profits for the year are $25,000. They agree to share profits and losses as follows: 7. Emily $14,000 10% 2/5 Megan $20,000 10% 3/5 Salaries Interest on capital Remaining profits and losses Megan's share of the profit is: A. $13,000 B. $12,000 C. $12,500 D. $14,600 E. None of the above. 8. A capital deficiency means that: A. The partnership has a loss. B. The partnership has more liabilities than assets. C. At least one partner has a debit balance in his/her capital account. D. At least one partner has a credit balance in his/her capital account. E. The partnership has been sold at a loss