Prepare the entries to record initial capital investments

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Question - "Khalid, Dina, and James are partners by making capital contributions 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 and an interest allowance of 10% on beginning-of-year capital balances to each partner. Any remaining balance is to be divided equally. Partnership net income for the year is $190,000.

Required - Prepare the entries to record the initial capital investments, the allocation of net income and close the partners' withdrawal accounts, assuming Khalid withdrew $10000, Dina withdrew $5000 and James withdrew $30000"

Reference no: EM132653410

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