Adam,Bill and Charlie are partners.The profit and rule sharing rule between them is 3:4:4,with Bill getting the most and Adam getting the least.The partnership incurs a net loss of $18,000.While closing the Income summary:
A)Charlie,capital will be debited for $6545.
B)Adam,capital will be debited for $6545.
C)Income summary will be credited for $6545.
D)Adam,capital will be credited for $6545.

Question

Quizplus · Accepted Answer

The loss is shared in the ratio 3:4:4. Charlie's share of the loss is (4/11) * 18000 = $6545.45, so Charlie's capital account will be debited for $6545.

Adam,Bill and Charlie Are Partners