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With the Variable Capital Balances Method Method 1)of Accounting for Partnership

Question 3

Multiple Choice

With the variable capital balances method method 1) of accounting for partnership equity,the general journal entry to record interest on capital is:


A) Debit profit distribution account; credit partner's capital accounts
B) Debit profit distribution account; credit partner's retained earnings accounts
C) Debit profit and loss summary account; credit partner's capital accounts
D) Debit profit and loss summary account; credit partner's retained earnings accounts

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