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WAEC Financial Accounting 2012 Question 30

Question 30

Partnership Accounts

Partners whose liabilities are restricted to their financial contribution to the partnership in the event of winding up are

  1. A.ordinary partners.
  2. B.limited partners.
  3. C.dormant partners.
  4. D.sleeping partners.
Show the answer and explanation

Answer: B (limited partners.)

Explanation

A limited partner can lose only the capital he put in; other partners have unlimited liability.