When the fixed capital method is used, the partners’ share of profits and remunerations are credited to the
- current account
- profit and loss account
- profit and loss appropriation account
-
capital account
The correct answer is: D
Explanation
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