Post Utme Achievers University 2018 Accounting Question 7

Practice objective / multiple choice question 7 from the 2018 Post Utme Achievers University Accounting examination.

Post Utme Achievers University 2018 Accounting Objective / Multiple Choice
Question 7 POST_UTME_ACHIEVERS_UNIVERSITY • 2018 • ACCOUNTING • objective

A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. Prepare the necessary journal entry to distribute the profit of ₦20,000.

Answer Options

A. ₦18,000 debit to A's Capital, ₦2,000 credit to B's Capital
B. ₦12,000 debit to A's Capital, ₦8,000 credit to B's Capital
Correct Answer C. ₦20,000 credit to Profit and Loss, ₦12,000 debit to A's Capital, ₦8,000 debit to B's Capital
D. ₦18,000 credit to Profit and Loss, ₦12,000 debit to A's Capital, ₦6,000 credit to B's Capital
Correct Answer
C
Correct Option:
₦20,000 credit to Profit and Loss, ₦12,000 debit to A's Capital, ₦8,000 debit to B's Capital

About This Question

This is Post Utme Achievers University 2018 Accounting Question 7. It is one of the objective questions from the 2018 Post Utme Achievers University Accounting examination.

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