Keith and Jim formed a partnership business. The partnership incurs a net loss of $6,000 and the partners agreed to share the losses equally. The entry to close the net loss will:
A)debit Income Summary by $6,000.
B)decrease Keith, Capital by $3,000.
C)increase Jim, Capital by $3,000.
D)decrease Jim, Capital by $6,000.

Question

Quizplus · Accepted Answer

The net loss is shared equally, so each partner's capital account is decreased by $3,000.

Keith and Jim Formed a Partnership Business