Robin and Hood formed a partnership on 1 July 2018 with initial capital balances of $180 000 and $120 000 respectively. For the year ended 30 June 2019, partnership earned a loss of 40,000. Robin and Hood agreed to share this profit based on their original capital balances.

What would be the journal entries to allocate the profit to the partners? Capital accounts are to be used for profit allocation.

Select one:

Dr Profit Distribution $300,000

Cr P & L Summary $300,000

Dr Robin, Capital $180,000

Dr Hood, Capital $120,000

Cr Profit Distribution $300,000

Dr P & L Summary $40,000

Cr Profit Distribution $40,000

Dr Profit Distribution $40,000

Cr Robin, Capital $24,000

Cr Hood, Capital $16,000

None of these

Dr P & L Summary $300,000

Cr Profit Distribution $300,000

Dr Profit Distribution $300,000

Cr Robin, Capital $180,000

Cr Hood, Capital $120,000

Dr Profit Distribution $40,000

Cr P & L Summary $40,000

Dr Robin, Capital $24,000

Dr Hood, Capital $16,000

Cr Profit Distribution $40,000