When preparing the closing entries for a partnership at the end of the accounting period which of the following statements is correct? Assume that capital account balances are not fixeD.

Select one:

a.

The profit or loss summary account is closed to the retained earnings accounts.

b.

The retained earnings account is closed to the profit or loss summary account.

c.

The drawings accounts are closed to the capital accounts.

d.

Income and expenses are closed to the capital accounts. In a partnership, the profit and loss sharing ratio will be based: