Post Utme Bells University 2019 Accounting Question 2

Practice objective / multiple choice question 2 from the 2019 Post Utme Bells University Accounting examination.

Post Utme Bells University 2019 Accounting Objective / Multiple Choice
Question 2 POST_UTME_BELLS_UNIVERSITY • 2019 • ACCOUNTING • objective

A partnership between John and Mary has a capital account balance of ₦50,000. John's capital account balance is ₦30,000, and Mary's capital account balance is ₦20,000. What is the correct journal entry to record the distribution of the partnership's profit?

Answer Options

A. Debit John's Capital A/c ₦10,000, Credit Mary's Capital A/c ₦10,000
Correct Answer B. Debit Profit and Loss A/c ₦10,000, Credit John's Capital A/c ₦5,000, Credit Mary's Capital A/c ₦5,000
C. Debit John's Capital A/c ₦5,000, Credit Mary's Capital A/c ₦5,000
D. Debit Profit and Loss A/c ₦10,000, Credit John's Capital A/c ₦10,000
Correct Answer
B
Correct Option:
Debit Profit and Loss A/c ₦10,000, Credit John's Capital A/c ₦5,000, Credit Mary's Capital A/c ₦5,000

About This Question

This is Post Utme Bells University 2019 Accounting Question 2. It is one of the objective questions from the 2019 Post Utme Bells University Accounting examination.

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