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

Question

Quizplus · Accepted Answer

The correct entry to record the equal distribution of net income between two partners involves debiting the Income Summary account to close it and crediting each partner's capital account to reflect their share of the net income. This increases each partner's equity in the business.

The Entry to Record the Equal Distribution of Net Income