Post Utme Afe Babalola University 2020 Accounting Question 28

Practice objective / multiple choice question 28 from the 2020 Post Utme Afe Babalola University Accounting examination.

Post Utme Afe Babalola University 2020 Accounting Objective / Multiple Choice
Question 28 POST_UTME_AFE_BABALOLA_UNIVERSITY • 2020 • ACCOUNTING • objective

A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The partnership's trial balance shows a debit balance of ₦10,000 in the account 'Drawings'. What is the correct treatment of this account in the partnership's financial statements?

Answer Options

A. Debit balance is ignored
B. Debit balance is credited to the partner's capital account
Correct Answer C. Debit balance is debited to the partner's capital account
D. Debit balance is ignored and shown as a separate item in the balance sheet
Correct Answer
C
Correct Option:
Debit balance is debited to the partner's capital account

About This Question

This is Post Utme Afe Babalola University 2020 Accounting Question 28. It is one of the objective questions from the 2020 Post Utme Afe Babalola University Accounting examination.

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