The partnership agreement of Maple and Oak is based on a ratio of 1:3.

Required:

If the partnership profit for the year ended December 31, 2021 is $40,000, prepare the journal entry to allocate the profit.

Select one:

a. Debit Income Summary 40,000; Credit Maple, Capital 10,000; Credit Oak, Capital 30,000.

b. Debit Cash 40,000; Credit Maple, Capital 10,000; Credit Oak, Capital 30,000.

c. Debit Income Summary 40,000; Credit Maple, Withdrawals 10,000; Credit Oak, Withdrawals 30,000.

d. Debit Maple, Capital 10,000, Debit Oak, Capital 30,000; Credit Income Summary 40,000.

e. Debit Income Summary 40,000; Credit Maple, Capital 20,000; Credit Oak, Capital 20,000.