-
A.
current account
-
B.
profit and loss account
-
C.
profit and loss appropriation account
-
D.
capital account
Correct Answer: Option 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
Report an Error
Ask A Question
Download App
Quick Questions
Contributions ({{ comment_count }})
Please wait...
Modal title
Report
Block User
{{ feedback_modal_data.title }}