Post Utme Bsu 2020 Accounting Question 11

Practice objective / multiple choice question 11 from the 2020 Post Utme Bsu Accounting examination.

Post Utme Bsu 2020 Accounting Objective / Multiple Choice
Question 11 POST_UTME_BSU • 2020 • ACCOUNTING • objective

In a partnership account, the capital of one partner is withdrawn and replaced by a loan from another partner. The loan is repayable on demand. What is the effect on the partnership's balance sheet?

Answer Options

Correct Answer A. Increase in loan account and decrease in capital account
B. Increase in capital account and decrease in loan account
C. No effect on the balance sheet
D. Decrease in loan account and increase in capital account
Correct Answer
A
Correct Option:
Increase in loan account and decrease in capital account

About This Question

This is Post Utme Bsu 2020 Accounting Question 11. It is one of the objective questions from the 2020 Post Utme Bsu Accounting examination.

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