Home / Aptitude Tests / Accounting / When the fixed capit...

When the fixed capital method is used, the partners' ...

When the fixed capital method is used, the partners' share of profits and remunerations are credited to the

A.

Current account

B.

Profit and loss account

C.

Profit and loss appropriation account

D.

Capital account

View answer & explanation

Correct answer is D

The partnership capital account is an equity account in the accounting records of a partnership. It contains the following types of transactions:

Initial and subsequent contributions by partners to the partnership, in the form of either cash or the market value of other types of assets
Profits and losses earned by the business, and allocated to the partners based on the provisions of the partnership agreement
Distributions to the partners

See all Accounting questions & answers

See more JAMB questions & answers

Similar Questions

The movement of goods from head office to a branch is treated in the head office as ...

Given: Subscription in arrears 01/10/06...........N2,000 Subscription in advance 01/10/06............

The total debtors account of trading concern is N13,000. out of this 2% is irrecoverable, 5% of the ...

The bank statement shows a debit balance of Le 475. After the entry of an uncredited of Le Le 800, t...

Suppliers' personal account are found in the ...

Faruk and Osawe are in partnership sharing profits and losses in the ratio of 3:7. Faruk is to recei...

The instrument used in analysis and interpretation of financial statement is the ...

The amount of money granted by government to public institutions to meet recurrent expenditure durin...

Which of the following terms is not used to describe the total amount stated in the memorandum of as...

Lighting..................N2925 Rent......................N2640 Salary....................N4050 ...

Aptitude Tests

Personality Test

Puzzles Questions and Answers

Data Interpretation Questions and Answers

Abstract Reasoning Questions and Answers

Spatial Reasoning Questions and Answers

Nigeria General Knowledge Questions and Answers

Quantitative Reasoning Questions and Answers

Logical Reasoning Questions and Answers

Situational Judgement Questions and Answers

Numerical Reasoning Questions and Answers

Verbal Reasoning Questions and Answers

Microsoft Office Questions and Answers

Typing Speed and Accuracy Test

View latest jobs in Nigeria today