Post Utme Igbinedion University 2022 Accounting Question 31

Practice objective / multiple choice question 31 from the 2022 Post Utme Igbinedion University Accounting examination.

Post Utme Igbinedion University 2022 Accounting Objective / Multiple Choice
Question 31 POST_UTME_IGBINEDION_UNIVERSITY • 2022 • ACCOUNTING • objective

In a partnership account, the capital of one partner is withdrawn and replaced by a loan from the same partner. What is the effect on the capital account of the partner?

Answer Options

A. The capital account of the partner is reduced by the amount of the loan.
B. The capital account of the partner is increased by the amount of the loan.
Correct Answer C. The capital account of the partner remains unchanged.
D. The capital account of the partner is reduced by the amount of the withdrawal.
Correct Answer
C
Correct Option:
The capital account of the partner remains unchanged.

About This Question

This is Post Utme Igbinedion University 2022 Accounting Question 31. It is one of the objective questions from the 2022 Post Utme Igbinedion University Accounting examination.

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