Author: staff

Goodwill is taken into account in partnership when? A. the business has good customer relations B. the business is making a huge profit C. a new partner is admitted D. a partner becomes dormant Correct Answer: Option C C. a new...

When partners maintain fixed capital accounts, the correct entries for a partner’s share of profit is? A. debit profit and loss appropriation account, credit current Account B. Debit profit and loss appropriation account,...

When a discount is allowed, the accounting entry is debit Discount allowed and credit? A. suspense account B. expense account C. debtors account D. creditors account Correct Answer: Option C C. debtors...

Which of the following is not correct? It is the _______? A. credit sales are entered on the debit side of the customer’s personal account B. credit purchases are entered on the debit side of the supplier’s personal...

Which of the following is not a debit item in the partnership profit and loss appropriation account? A. interest on partners drawings B. partners salaries C. interest on partners capital D. share of profit Correct Answer: Option...