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JAMB Principles of Accounts 2000 Question 35

Question 35

Partnership Accounts

The Partnership Deed normally specifies

  1. A.how profits or losses are to be shared
  2. B.the capital to be contributed annually
  3. C.how salaries are paid to employees
  4. D.the profit that should be earned annually.
Show the answer and explanation

Answer: A (how profits or losses are to be shared)

Explanation

The deed sets out the partners' rights, including the ratio for sharing profits and losses.