Chapter 5
Partnerships
237
b) Assume that the net income remaining is distributed on the ratio of the opening balance
of capital. Prepare the schedule showing the changes in capital.
c) Based on the division of profits calculated in part b), prepare the journal entry to record
the distribution of profits and close the drawings accounts on December 31. Assume that
revenues and expenses have already been closed to the income summary account.
Date
Account Title and Explanation
Debit
Credit
