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
waec 2016accounting

The correct answer is B. Credited to partners current accounts

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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