Help with accounting/finance

Accounting
Tutor: None Selected Time limit: 1 Day

When a partnership is liquidated, the journal entry to pay the claims of creditors would include a debit to
A. 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.

Apr 28th, 2015

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.

Apr 28th, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Apr 28th, 2015
...
Apr 28th, 2015
Dec 3rd, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer