Barbara Scott and Martin Towers are partners in the firm of Ten Column Accounting Services. Their partnership agreement states that Scott and Towers share net income or net loss in a 3:2 ratio.

At the end of the period, December 31, the business had a net loss of $9,700. During the period Scott withdrew $6,600 and Towers withdrew $5,400.

Instructions

In your working papers, do the following:

1. Journalize the closing entries to divide the net loss between the partners and to close the withdrawals accounts. Use general journal page 14.

2. Post the closing entries to the general ledger accounts.