When a loss is closed into the partners' Capital accounts,Income Summary is debited.

Name: When a loss is closed into the partners' Capital accounts,Income Summary is debited.
Brand: Quizplus
Rating: 4.9 (49 reviews)

Question

Quizplus · Accepted Answer

When a loss is closed into the partners' Capital accounts, the Income Summary account is credited, not debited, to close the loss. The partners' Capital accounts are debited to distribute the loss among them according to their agreed-upon ratios.

When a Loss Is Closed into the Partners' Capital Accounts,Income