Which of the following statements is true about partnership accounting?
A)A particular partner's capital account is debited when a withdrawal takes place by that partner.
B)The process of closing, through the closing entry process, a positive net income results in an increase in overall partner capital.
C)The drawings account balances are deducted to arrive at the net income to allocate to the partners.
D)The drawings account is closed to retained earnings at the end of the period.

Question

Quizplus · Accepted Answer

The capital account in a partnership keeps track of each partner's capital balance and is affected by partner investments and withdrawals as well as net income.

Which of the Following Statements Is True About Partnership Accounting