When the fixed capital method is used, the partners' share of profits and remunerations are credited to the

  • A current account
  • B profit and loss account
  • C profit and loss appropriation account
  • D capital account

The correct answer is D. capital account

The partnership capital account is an equity account in the accounting records of a partnership. It contains the following types of transactions:

Initial and subsequent contributions by partners to the partnership, in the form of either cash or the market value of other types of assets

Profits and losses earned by the business, and allocated to the partners based on the provisions of the partnership agreement

Distributions to the partners

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