The Clancy and Flanagan Partnership incurred a net loss of $40,000 for the current year.The beginning capital balances of the partners were respectively,$35,000 and $45,000.Prepare journal entries to transfer the net loss to the partners' capital accounts based on the following agreements.
a_No mention of net income/loss agreement.
b_$30,000 to Clancy and $10,000 to Flanagan based on service,then the remaining balance divided in the ratio of 3:2.
c_Interest of 10% on beginning capital balances,balance divided in the ratio of 2:3.

Question

Quizplus · Accepted Answer

The Answer of The Clancy and Flanagan Partnership incurred a net loss of $40,000 for the current year.The beginning capital balances of the partners were respectively,$35,000 and $45,000.Prepare journal entries to transfer the net loss to the partners' capital accounts based on the following agreements.
a_No mention of net income/loss agreement.
b_$30,000 to Clancy and $10,000 to Flanagan based on service,then the remaining balance divided in the ratio of 3:2.
c_Interest of 10% on beginning capital balances,balance divided in the ratio of 2:3.

The Clancy and Flanagan Partnership Incurred a Net Loss of $40,000