N760,000
N744,800
N744,000
N784,000
Correct answer is A
5% x 800
5/100 x 800 = 40
800 - 40 = 760
The directors' salaries paid are items of?
Current liabilities
Profit and loss account
Trading account
Current account
Correct answer is B
No explanation has been provided for this answer.
13,000,000
12,000,000
9,000,000
15,700,000
Correct answer is C
6000 x 0.50 = 3000
6000 x 1 = 6000
3000 + 6000 = 9000
The capital contribution by the partners is treated in the?
Current account
Capital account
Trading account
Balance sheet
Correct answer is B
Partnership capital account: Which shows the capital contribution of a partner, plus profits and minus losses and distributions.
The interest on partners' loans is?
Debited in current account
Credited in profit and loss account
Debited in profit and loss account
Credited in current account
Correct answer is C
Interest on partners' loan to the firm is a charge against profit. Such interest is to be allowed whether there are profit or not. So, interest as a partners' loan is credited to his loan account and later on it is transferred to the debit of profit and loss account.