Post Utme Veritas University 2019 Accounting Question 22

Practice objective / multiple choice question 22 from the 2019 Post Utme Veritas University Accounting examination.

Post Utme Veritas University 2019 Accounting Objective / Multiple Choice
Question 22 POST_UTME_VERITAS_UNIVERSITY • 2019 • ACCOUNTING • objective

A company has two partners, A and B, who share profits and losses in the ratio 3:2. The company's profit for the year ended 31st December 2022 was ₦1,500,000. Prepare the profit-sharing journal entry.

Answer Options

Correct Answer A. Debit Profit Sharing 1,500,000, Credit A's Capital 1,500,000
B. Debit Profit Sharing 1,500,000, Credit B's Capital 1,500,000
C. Debit A's Capital 1,500,000, Credit Profit Sharing 1,500,000
D. Debit B's Capital 1,500,000, Credit Profit Sharing 1,500,000
Correct Answer
A
Correct Option:
Debit Profit Sharing 1,500,000, Credit A's Capital 1,500,000

About This Question

This is Post Utme Veritas University 2019 Accounting Question 22. It is one of the objective questions from the 2019 Post Utme Veritas University Accounting examination.

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