The entry to record the equal distribution of net income between two partners consists of a debit to
A) Income Summary and a credit to each partner's capital account.
B) each partner's capital account and a credit to Cash.
C) Income Summary and a credit to each partner's drawing account.
D) each partner's capital account and a credit to Income Summary.

Question

Quizplus · Accepted Answer

The entry to distribute net income involves debiting Income Summary to close it and crediting each partner's capital account to reflect their share of the income.

The Entry to Record the Equal Distribution of Net Income