I cant figure this out. This is accounting. Someone must know how to do this. This is on dividing net income. Please
C and D had capital balances of 60,000 and 120,000 respectively on Jan 1 of the current year. On May 8, C invested an additional 10,000 in the partnership. During the year, C and D withdrew 27,000 and 32,000 respectively. After closing all expense and revenue accounts at the end of the year, Income Summary has a credit balance of 60,000. The net income is divided in the ratio of 2:3 after a salary allowance of 40,000 to C.
Journalize the entries to close (a) the income summary account and (b) the drawing accounts.
C and D had capital balances of 60,000 and 120,000 respectively on Jan 1 of the current year. On May 8, C invested an additional 10,000 in the partnership. During the year, C and D withdrew 27,000 and 32,000 respectively. After closing all expense and revenue accounts at the end of the year, Income Summary has a credit balance of 60,000. The net income is divided in the ratio of 2:3 after a salary allowance of 40,000 to C.
Journalize the entries to close (a) the income summary account and (b) the drawing accounts.