In a partnership business, the net profit serves as opening figure for

Assessment: WAEC SSCE - Financial Accounting - 2008 (Objective) Subject: Financial Accounting

Question 1 Report

In a partnership business, the net profit serves as opening figure for
Answer Details
In a partnership business, the net profit serves as the opening figure for the appropriation account. The appropriation account is used to distribute the net profit among the partners according to their profit sharing ratio. It takes into account items such as interest on capital, salaries, and bonuses that are payable to the partners. The net profit figure is transferred from the profit and loss account to the appropriation account, which is then used to calculate the amount of profit that each partner is entitled to. Therefore, the answer is appropriation account.
Read lesson note on Partnership Accounts (WAEC)
Read lesson note on Partnership Accounts (JAMB)
View Answer

Related Questions

1

Which of the following concepts is exposed to hold when a proprietor makes a drawing of goods or cash from the business?
2

In the preparation of manufacturing accounts, prime cost plus factory overheads equal to cost of
3

A sales Day book is used for recording
4

Tale LTd. has 100,000 ordinary shares of ₦1 each and 60,000 5% preference shares of ₦1 each. Both were fully paid as shown below, \(\begin{array}{c|c} & ₦\\ ...
5

Returns inwards is also called
6

An analytical cash book is used to
7

Which of the following is the basis accounting equation?
8

Which of the following is the effect of an increase in the provision for discount allowed?

Download The App On Google Playstore

Everything you need to excel in your exams

Green Bridge CBT Mobile App
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning