Chapter 12, Problem 3PSA

To determine

Concept Introduction:

Partnership firm normally have a written agreement between partners with regards to sharing of profits, whether it is going to be equally, on the basis of capital investment or any other way. On the basis of such sharing ratio, the books of accounts get affected for each partner's capital account.

To Prepare:

The closing journal entry to close the firms Income Summary account as on Dec. 31 under each of the given cases