When Closing the Accounts of a Partnership It Is True

question 59

Multiple Choice

When closing the accounts of a partnership it is true that:

• A) partner's salaries must be treated as drawings because partners are owners.
• B) a retained profits account is used rather than a profit or loss summary account.
• C) profit is credited to each partner's capital account according to the profit sharing agreement.
• D) a loss for the period is carried forward and is not transferred to the partner's capital accounts.