With the fixed capital balances method (method 2) of accounting for partnership equity, the general journal entry to record interest on capital is:
A) debit profit distribution account; credit partner's capital accounts.
B) debit profit distribution account; credit partner's retained profit accounts.
C) debit profit or loss summary account; credit partner's capital accounts.
D) debit profit or loss summary account; credit partner's retained earnings accounts.

Question

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The Answer of With the fixed capital balances method (method 2) of accounting for partnership equity, the general journal entry to record interest on capital is:
A) debit profit distribution account; credit partner's capital accounts.
B) debit profit distribution account; credit partner's retained profit accounts.
C) debit profit or loss summary account; credit partner's capital accounts.
D) debit profit or loss summary account; credit partner's retained earnings accounts.

With the Fixed Capital Balances Method (Method 2) of Accounting