JAMB Accounting 2007 Objective — Question 8

Question 8 of 46 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2007 Objective paper, with the correct answer and a full explanation.

Expenses paid during the conversion of partnership to a company are

A. debited to a company account
B. debited to the partners' capital accountCorrect
C. debited to the cash account
D. credited to the realization account

Explanation

Expenses incurred while converting a partnership to a company are treated as an expense of the partners and are debited to the partners' capital account.

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