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Where fixed capitals are maintained in a partnership, share profits are

Accounts - Principles of Accounts
WAEC 2016

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
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Correct Answer: Option 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. 


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