Question

The appropriate format of the December 31, 2017 closing entry for John & Hope Limited Liability Partnership, whose two partners had withdrawn their salaries from the partnership during the year, is:
(A) John, Drawing Hope, Drawing Salaries Payable
(B) Salaries Expense John, Drawing Hope, Drawing
(C)John, Capital Hope, Capital Salaries Payable
(D) John, Capital Hope, Capital John, Drawing Hope, Drawing

Multiple Cholce:
(A) Option A.
(B) Option B.
(C) Option C
(D) Option D.

Answer 1

Answer:

(D) Option D.

Explanation:

In the given question, it is mentioned that there are two partners namely John and Hope who withdrawn their salaries, so the journal entry would be recorded by debiting both partner's capital and credited the drawings of both partners.

As drawing would be deducted, so it would be credited.  

The journal entry is shown below:

John Capital A/c Dr

Hope Capital A/c Dr

    To John Drawing A/c

    To Hope Drawing A/c  

(Being closing entry is recorded)