Accounting JAMB

The major distinguishing element between the final account of a partnership and that of a sole trader is the?

A. drawing account
B. capital account
C. Creditor account
D. Appropriation account

Correct Answer:

Option B – capital account

Explanation

The Major Difference Of The Financial Statement between a Sole Proprietorship And Partnership is More than one capital account. The number of capital accounts depends on the number of partners in the Partnership concern. Profit & loss is distributed to the partners’ capital account according to the agreed ratio

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