The entry to record a partner's salary allowance consists of a debit to
A) the partner's capital account and a credit to Cash.
B) Salaries Expense and a credit to the partner's drawing account.
C) Income Summary and a credit to the partner's capital account.
D) Income Summary and a credit to the partner's drawing account.

Question

Quizplus · Accepted Answer

A partner's salary allowance is recorded by debiting Income Summary and crediting the partner's capital account, as it is considered a distribution of profit rather than an expense.

The Entry to Record a Partner's Salary Allowance Consists of a Debit