Alex,Brad and Carl are partners.The profit and rule sharing rule between them is 5:2:2 in the alphabetical order.The partnership incurs a net loss of $100,000.Before preparing the closing journal entry the:
A)Alex,capital account will have a credit balance of $55,556.
B)Alex,capital account will have a debit balance of $55,556.
C)Income summary account will have a debit balance of $100,000.
D)Carl,capital account will have a debit balance of $22,222.

Question

Quizplus · Accepted Answer

The income summary account will have a debit balance of $100,000 because it reflects the net loss incurred by the partnership before closing entries are made.

Alex,Brad and Carl Are Partners