Question
Partnership accounting Holden, Phillips, and Rogers are partners with beginning-year capital balances of $120,000, $60,000, and $60,000, respectively. Partnership net income for the year is
Partnership accounting
Holden, Phillips, and Rogers are partners with beginning-year capital balances of $120,000, $60,000, and $60,000, respectively. Partnership net income for the year is $84,000. Make the necessary journal entry to close Income Summary to the capital accounts if:
- The Partners agree to divide income based on their beginning-year capital balances?
- The Partners agree to divide income based on the ratio of 5:3:2 (Holden:Phillips:Rogers), respectively?
- The Partnership agreement is silent as to division of income and less?
Date Account Titles Debits Credits <------
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Introduction To Management Accounting A User Perspective
Authors: Michael L Werner, Kumen H Jones
2nd Edition
0130327506, 9780130327505
