- 1 Marks
FA – May 2024 – L1 – SA – Q15 – Partnership Accounts
Identifies the correct journal entry for the amount due to a retired partner if not paid immediately.
Question
What is the journal entry required to record the amount due to a retired partner if he is not paid immediately in cash?
A. Dr. the retired partner’s capital account
Cr. loan account in his name
B. Dr. loan account in his name
Cr. the retired partner’s capital account
C. Dr. the retired partner’s capital account
Cr. Statement of profit or loss
D. Dr. loan account in his name
Cr. Statement of profit or loss
E. Dr. loan account in his name
Cr. cash book
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