A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2020 · Q131 Mark
How is a loss on realisation recorded when a partnership is dissolved?
ACredit each partner's capital account equally.
BDebit each partner's capital account equally.
CCredit each partner's capital account in the profit-sharing ratio.
DDebit each partner's capital account in the profit-sharing ratio.
✓ Correct answer
D: Debit each partner's capital account in the profit-sharing ratio.
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill Preparation of financial statements and see which topics are most likely to come up next.
Sign up free →