Where fixed capitals are maintained in a partnership, share profits are

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: Option 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. 

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