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JAMB Accounting 2016 Objective — Question 31

Question 31 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2016 Objective paper, with the correct answer and a full explanation.

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31. If one of the partners is insolvent, the balance on his capital account will be (a) a debit balance (b) a credit balance (c) disregarded (d) written-off

  • A. a debit balanceCorrect
  • B. a credit balance
  • C. disregarded
  • D. written-off

Explanation

A partner will become insolvent when its capital account has a debit balance.

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