JAMB Accounting 2017 Objective — Question 31

Question 31 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2017 Objective paper, with the correct answer and a full explanation.

If one of the partners is insolvent, the balance on his capital account will be

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

Explanation

A partner becomes insolvent when their capital account shows a debit balance (i.e. they owe the partnership).

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