=Illustration of Closing Entries.= A, B, and C form a partnership, each investing $1,000.00, profits to be shared equally. When the books are closed, the net profits are found to be $909.60. A's personal account shows a debit balance of $46.50; B's personal account shows a credit balance of $100.00; C's personal account shows a credit balance of $52.00. The entries are as follows: Profit and Loss $909.60 To A, Capital _a/c_ $303.20 " B, " " 303.20 " C, " " 303.20 A, Capital _a/c_ 46.50 A, Personal _a/c_ 46.50 B, Personal _a/c_ 100.00 B, Capital _a/c_ 100.00 C, Personal _a/c_ 52.00 C, Capital _a/c_ 52.00 The capital accounts after closing are: A, CAPITAL _a/c_ Dec. 31, Bal. personal _a/c_ $46.50 $1,000.00 Jan. 1 Balance 1,256.70 303.20 (1/3 profits) Dec. 31 -------- -------- $1,303.20 $1,303.20 ========= ========= $1,256.70 net invest. Dec. 31 B, CAPITAL _a/c_ Dec. 31, Balance $1,403.20 $1,000.00 Jan. 1 303.20 (1/3 profits) Dec. 31 100.00 pers. _a/c_ Dec. 31 -------- -------- $1,403.20 $1,403.20 ========= ========= $1,403.20 net invest. Dec. 31 C, CAPITAL _a/c_ Dec. 31, Balance $1,355.20 $1,000.00 Jan. 1 303.20 (1/3 profits) Dec. 31 52.00 pers. _a/c_ Dec. 31 -------- -------- $1,355.20 $1,355.20 ========= ========= $1,355.20 net invest. Dec. 31 SAMPLE TRANSACTION =37.= The first business taken up for consideration under the head of partnerships is a retail shoe business. The stock is kept in three classes: men's, women's, and children's shoes. Purchase and sales books, ruled to segregate transactions of each class, are used. The bank account is kept in the cash book, which is also provided with two columns for discount. All sales, whether for cash or on account, are recorded on sales tickets.