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
Correct Answer:
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Q1: Fatima and Jaddon have capital balances of
Q2: Smiles and Scowls,two sole traders form
Q4: Internally generated goodwill is not recorded by
Q5: When assets are contributed to a partnership
Q6: Which of these is not a feature
Q7: If the variable capital balances method method
Q8: It is agreed in the partnership agreement
Q9: Douglas and Johnson each invested $50 000
Q10: Mutual agency means:
A)Unlimited liability for partnership debts
B)Sharing
Q11: Fair value is defined in the accounting
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