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WAEC Financial Accounting 2008 Question 5

Question 5

Partnership Accounts

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

  1. A.trading account
  2. B.profit and loss account
  3. C.current account
  4. D.appropriation account.
Show the answer and explanation

Answer: D (appropriation account.)

Explanation

The appropriation account starts with the net profit.