The journal entry to close net income to the partners is to:
A) debit Income Summary; credit the capital accounts.
B) debit the capital accounts; credit Income Summary.
C) debit the capital accounts; credit Net Loss.
D) debit Net Loss; credit the capital accounts.

Question

Quizplus · Accepted Answer

Closing net income to the partners involves transferring the net income from the Income Summary account to the partners' capital accounts, which is done by debiting Income Summary and crediting the capital accounts.

The Journal Entry to Close Net Income to the Partners