When a partnership is liquidated, the journal entry to pay the claims of creditors would include a debit toA. Cash and a credit to each individual creditor. B. each individual creditor and a credit to Cash. C. each individual partner’s capital account. D. each individual partner’s capital account and a credit to Cash.
B. each individual creditor and a credit to Cash.
this would be because the partners have decided to call it a day with their partnership. credit would be credited with cash and debit corresponding to each creditor.
Content will be erased after question is completed.
Enter the email address associated with your account, and we will email you a link to reset your password.
Forgot your password?