With the Variable Capital Balances Method (Method 1) of Accounting

question 58

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) DR Profit distribution account; CR Partner's capital accounts.
• B) DR Profit or loss summary account; CR Partner's capital accounts.
• C) DR Profit distribution account; CR Partner's retained earnings accounts.
• D) DR Profit or loss summary account; CR Partner's retained earnings accounts.

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Definitions:

Environmental Movement

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