Question

In the books of a partnership firm maintaining fluctuating capital accounts, which of the following appropriations or adjustments would result in a credit to the Partners' Current Accounts?

• A. Interest allowed on partners' capitals
• B. Remuneration, salary or commission payable to partners
• C. Share of divisible profits transferred to partners
• D. All of the above items

Hint:

To remember which side to record an item on: If it makes the partner "richer" (Interest, Salary, Profit), it goes on the Credit side. If it makes them "poorer" (Drawings, Interest on Drawings, Loss), it goes on the Debit side.

Answer 1

The Correct Option is D