Farrell and Jimmy enter into a partnership agreement on May 1, 2015. Farrell contributes $50,000...
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Accounting
Farrell and Jimmy enter into a partnership agreement on May 1, 2015. Farrell contributes $50,000 and Jimmy contributes $150,000 as their capital contributions. They decide to share profits and losses in the ratio of their respective capital account balances. The net loss for the year ended December 31, 2015 is $40,000. The capital account of Farrell should be ________ with the amount of loss.
a. debited
b. credited
c. increased
d. halved
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