JAMB Accounting 2020 Objective — Question 32

Question 32 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2020 Objective paper, with the correct answer and a full explanation.

32. When a partnership operation is converted to a public liability company, balances in the current accounts of partners will be transferred to

A. A. capital accountCorrect
B. B. profit and loss appropriation account
C. C. bank account
D. D. share capital account

Explanation

The balances in the current account of partners will be transferred to the capital account in the case of wind up or conversion, and the capital account will be closed.

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