Post Utme Bsu 2018 Accounting Question 1

Practice objective / multiple choice question 1 from the 2018 Post Utme Bsu Accounting examination.

Post Utme Bsu 2018 Accounting Objective / Multiple Choice
Question 1 POST_UTME_BSU • 2018 • ACCOUNTING • objective

In a partnership account, the capital of a partner who withdraws cash from the business is reduced by the amount withdrawn. However, if the partner's capital is reduced by the amount withdrawn, and the partner's share of profits is reduced by the same amount, what is the effect on the partner's capital account?

Answer Options

Correct Answer A. The partner's capital account is reduced by the amount withdrawn.
B. The partner's capital account is increased by the amount withdrawn.
C. The partner's capital account remains unchanged.
D. The partner's capital account is reduced by the amount withdrawn, but the partner's share of profits is increased by the same amount.
Correct Answer
A
Correct Option:
The partner's capital account is reduced by the amount withdrawn.

About This Question

This is Post Utme Bsu 2018 Accounting Question 1. It is one of the objective questions from the 2018 Post Utme Bsu Accounting examination.

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