JAMB Accounting 2014 Objective — Question 42
Question 42 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2014 Objective paper, with the correct answer and a full explanation.
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Where partnership is converted into a limited liability company, current account balances of partners are transferred to a
- A. realization account
- B. savings account
- C. share capital account
- D. capital accountCorrect
Explanation
The balances in partners' a/c are transferred to the capital account to determine the worth of each partner.
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