Find what total amount credited to the capital account

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Problem 1: C and D are partners who share profits and losses on a 3:1 basis, respectively, after a salary allowance of $15,000 is allocated to partner C. Earnings for the period total $51,000. What will be the total amount credited to the Capital account of partner C when the Income Summary account is closed?

A. $15,000

B. $20,000

C. $42,000

D. $32,000

Problem 2: In the partnership of Maxwell and Slade, Maxwell's capital balance is $40,000 and Slade's capital balance is $60,000. Maxwell sold 50% of his partnership interest to Norton, who paid $24,000 for the 50% interest. The journal entry on the partnership books related to this transaction would include:

A. a debit to Cash for $24,000

B. a debit to Cash for $20,000

C. a debit to Maxwell, Capital for $24,000

D. a debit to Maxwell, Capital for $20,000

Reference no: EM132756453

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