Where fixed capitals are maintained in a partnership, share profits are
A. Credited to partners capital accounts B. Credited to partners current accounts C. Debited to partners capital accounts D. Debited to partners current accounts
Correct Answer: B
Explanation
Each partner has a separate current account and includes; • The credit side of the current account shows all the profits of the partners • The credit side of the current account shows all the profits of the partner such as salary, interest on capital and the share of residue profits.
