Help with accounting/finance

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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

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Apr 28th, 2015
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Apr 28th, 2015
Jun 24th, 2017
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