Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

In what way 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.

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