Khalid,Dina and James Are Partners with Beginning-Year Capital Balances of $400,000,$320,000

Essay

Khalid,Dina and James are partners with beginning-year capital balances of $400,000,$320,000 and $160,000,respectively.The partners agreed to share income and loss as follows: Salary of $30,000 to Khalid,$50,000 to Dina and $55,000 to James.An interest allowance of 10% on beginning-of-year capital balances.Any remaining balance is to be divided equally.If partnership net income for the year is $190,000,determine each partner's share and make the appropriate journal entry to close the Income Summary to the capital accounts.