The capital contribution by the partners is treated in the?
Current account
Capital account
Trading account
Balance sheet
Correct answer is B
Partnership capital account: Which shows the capital contribution of a partner, plus profits and minus losses and distributions.
The interest on partners' loans is?
Debited in current account
Credited in profit and loss account
Debited in profit and loss account
Credited in current account
Correct answer is C
Interest on partners' loan to the firm is a charge against profit. Such interest is to be allowed whether there are profit or not. So, interest as a partners' loan is credited to his loan account and later on it is transferred to the debit of profit and loss account.
Memorandum
Bye-law
Deed
Financial regulation
Correct answer is C
A partnership deed, also known as a partnership agreement, is a document that outlines in detail the rights and responsibilities of all parties to a business operation.
The salary of a partner is usually debited to the?
Sundry debtors account
Appropriation account
Profit and loss account
Sundry current account
Correct answer is B
A partnership appropriation account is an intermediary account between the profit and loss account of the partnership and the individual capital accounts of each partner. The adjustments include such items as partner salaries and interest on partner capital, loans and drawings accounts
Which of the following is mostly used in treating partner's current earnings?
Savings account
Current account
Capital account
Share capital account
Correct answer is B
Current account of partners is also a type of Capital Account. So if there is a debit balance in Current Account, it means a loan give to the Partner by the Firm.