The accounting treatment of capital invested in partnership business will be? a. Debited to cash account b. Credited to cash account c. Debited to profit and loss appropriation account d. Debited to partners' capital account

The accounting treatment of capital invested in partnership business will be? a. Debited to cash account b. Credited to cash account c. Debited to profit and loss appropriation account d. Debited to partners' capital account

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 2MC: Any assets invested by a particular partner in a partnership ________. A. do not become a...

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Question

The accounting treatment of capital invested in partnership business will be?

Debited to cash account

Credited to cash account

Debited to profit and loss appropriation account

Debited to partners' capital account

Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item

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1) The objective of preparation of income statement of partnership is: a.To show the ratio of capital of partners b.To show how net profit has been distributed among partners c.To show the income and expenses of the partnership firm d.To show the financial position of business
The withdrawal of capital by a partner from the business of partnership will be: a. Debited to partners' capital account b. Debited to profit and loss appropriation account c. Credited to profit and loss account d. Credited to partners' capital account The amount of drawings taken by each partner will be: a. Debited to partners' current account b. Debited to profit and loss appropriation account c. Credited to partners' current account d. Credited to profit and loss account The closing balances of partners' current account will be: a. X RO 59784 (Dr), Y RO 17825 (Cr), Z RO 37622 (Dr) b. X RO 58748 (Dr), Y RO 16852 (Cr), Z RO 36620 (Dr) c. X RO 58784 (Dr), Y RO 16825 (Cr), Z RO 36622 (Dr) d. X RO 58984 (Dr), Y RO 16925 (Dr), Z RO 36626 (Dr)
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