Once net income is allocated to the partners

Once net income is allocated to the partners -...

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Once net income is allocated to the partners, it is transferred to the individual partners' capital  accounts through closing entries. For example, assume Dee's Consultants, Inc., a partnership,  earned $60,000 and their agreement is that all profits are shared equally. Each of the three partners  would be allocated $20,000 ($60,000 ÷ 3). The journal entry to record this allocation of net income 
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This note was uploaded on 11/15/2011 for the course ACCT 2310 taught by Professor Staff during the Spring '09 term at Texas State.

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