End of Chapter Exercise 8.5 Penny and Lane formed a partnership on 1 July 2018 with initial capital balances of $236,000 and $259,600 respectively. For the year ended 30 June 2019, the profit or loss summary account disclosed a final credit balance of $212,400. A. Prepare the closing entry to transfer the profit disclosed in the profit or loss summary account to the profit distribution account under method 1 and method 2. (Enter all debit entries first, followed by all credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Method 1 Variable capital balances Particulars Debit Credit (Transfer profit to distribution a/c) Method 2 Fixed capital balances Particulars Debit Credit (Transfer profit to distribution a/c)