Felix and Ian allocate 2/5 of their partnership's profits and losses to Felix and 3/5 to Ian.The net income of the firm is $20,000.The journal entry to close the Income Summary will include ________.
A) credit to Ian, Capital for $12,000
B) debit to Felix, Capital for $12,000
C) debit to Felix, Capital for $8000
D) credit to Income Summary for $20,000

Question

Quizplus · Accepted Answer

In closing, the Income Summary account will be debited for the total amount of Net Income and each of the Partner's Capital accounts will be credited for their share of Net Income.

Felix and Ian Allocate 2/5 of Their Partnership's Profits and Losses