Post Utme Abu 2024 Accounting Question 37

Practice objective / multiple choice question 37 from the 2024 Post Utme Abu Accounting examination.

Post Utme Abu 2024 Accounting Objective / Multiple Choice
Question 37 POST_UTME_ABU • 2024 • ACCOUNTING • objective

A partnership has two partners, A and B. The partnership's capital account shows a balance of ₦200,000. Partner A's capital account shows a balance of ₦100,000. Partner B's capital account shows a balance of ₦50,000. What is the correct journal entry to record the distribution of the partnership's profit?

Answer Options

Correct Answer A. ₦50,000 debit to Partner A's Capital and ₦50,000 credit to Partner B's Capital
B. ₦50,000 debit to Partner B's Capital and ₦50,000 credit to Partner A's Capital
C. ₦50,000 debit to Partner A's Capital and ₦50,000 credit to Profit and Loss
D. ₦50,000 debit to Partner B's Capital and ₦50,000 credit to Profit and Loss
Correct Answer
A
Correct Option:
₦50,000 debit to Partner A's Capital and ₦50,000 credit to Partner B's Capital

About This Question

This is Post Utme Abu 2024 Accounting Question 37. It is one of the objective questions from the 2024 Post Utme Abu Accounting examination.

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