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
B. Credited to partners current accounts
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.
