Where fixed capitals are maintained in a partne... - WAEC Accounting 2016 Question
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 option: b
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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