Where fixed capitals are maintained in a partnership, share profits are
- Credited to partners capital accounts
-
Credited to partners current accounts
- Debited to partners capital accounts
- Debited to partners current accounts
The correct answer is: B
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.