Which of the following is NOT a feature of method 1 of accounting for partnership equity?

a. Interest on capital is credited to the partners retained earnings accounts.

b. Partners drawings are closed to their capital accounts.

c. The profit or loss distribution account is closed to the partners capital accounts.

d. Partners initial assets investment are debited to capital accounts

6.

Which of the following is true of Detail accounts in the MYOB Accounts List?

a. Detail accounts are used only for report presentation purposes

b. Transactions cannot be posted directly to Detail accounts

c. Sub-totals can be shown against Detail accounts

d. Detail accounts are not shown in bold in the Accounts List

7.

Westlake Ltd declared a cash dividend of $2.50 per share on 22,000 ordinary shares on 15 July 2019. The dividend is to be paid on 15 August 2019 to all shareholders. The correct entry to be recorded on 15 August 2019 will include a:

a.

credit to retained earnings

b.

debit to retained earnings

c.

debit to dividends payable

d.

credit to dividends payable