Post Utme Mountain Top University 2021 Accounting Question 31

Practice objective / multiple choice question 31 from the 2021 Post Utme Mountain Top University Accounting examination.

Post Utme Mountain Top University 2021 Accounting Objective / Multiple Choice
Question 31 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2021 • ACCOUNTING • objective

In a partnership account, the capital of a partner is credited when the partner's share of profit is distributed. Which of the following is the correct journal entry for this transaction?

Answer Options

A. Debit Partner's Capital, Credit Partner's Share of Profit
Correct Answer B. Debit Partner's Share of Profit, Credit Partner's Capital
C. Debit Partner's Capital, Credit Cash
D. Debit Cash, Credit Partner's Capital
Correct Answer
B
Correct Option:
Debit Partner's Share of Profit, Credit Partner's Capital

About This Question

This is Post Utme Mountain Top University 2021 Accounting Question 31. It is one of the objective questions from the 2021 Post Utme Mountain Top University Accounting examination.

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