X,Y,and Z are partners with capital balances of $80,000,$40,000,and $40,000,respectively.Net income for the year is $30,000.Prepare the necessary journal entries to close Income Summary to the capital accounts if:
(a)The partners agree to divide income based on their beginning-of-year capital balances.
(b)The partners agree to divide income based on the ratio of 5:3:2,respectively.
(c)The partnership agreement is silent as to division of income.

Question

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The Answer of X,Y,and Z are partners with capital balances of $80,000,$40,000,and $40,000,respectively.Net income for the year is $30,000.Prepare the necessary journal entries to close Income Summary to the capital accounts if:
(a)The partners agree to divide income based on their beginning-of-year capital balances.
(b)The partners agree to divide income based on the ratio of 5:3:2,respectively.
(c)The partnership agreement is silent as to division of income.

X,Y,and Z Are Partners with Capital Balances of $80,000,$40,000,and $40,000,respectively