Partners K and R Receive an Interest Allowance of $20,000

question 140

Multiple Choice

Partners K and R receive an interest allowance of $20,000 and $30,000,respectively,and divide the remaining profits and losses in a 3:1 ratio.If the company sustained a net loss of $22,000 during the year,the entry to close the income or loss into their capital accounts is:

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Definitions:

Depressant Drug

A substance that slows down the activity of the central nervous system, resulting in reduced arousal or stimulation.

Tranquilizer

A type of psychotropic medication used to reduce tension or anxiety, often by depressing nervous system activity.

Depressants

Depressants are substances that reduce the functioning of the central nervous system, often resulting in a sense of relaxation or drowsiness.

Stimulants

Substances that increase activity in the brain and body, resulting in increased alertness, attention, and energy.