JAMB Accounting 2008 Objective — Question 40

Question 40 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2008 Objective paper, with the correct answer and a full explanation.

In partnership dissolution, an asset taken over by a partner is debited to

A. partner's capital account and credited to realization account
B. partners capital account and credited to asset accountCorrect
C. asset account and credited to realization account
D. realization account and credited to capital account

Explanation

When an asset is taken over by a partner, the accounting treatment is: Dr Partners capital A/c; Cr Asset A/c.

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