Which of the following is a debt entry to a partner's current account?

A) Interest of Capital
B) Drawings
C) Share of profit
D) Salary

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Answer: B) Drawings

Explanation

Drawings. Cash or goods a partner takes out for personal use lower what the firm owes that partner, so the entry goes on the debit side of the partner's current account. Interest on capital, partner salary and the profit share all add to what the partner is owed, so they go on the credit side.

Asked in: KGDCL 2021

Topic: Thermodynamics, Pumps and Compressors

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Which of the following is a debt entry to a partner's current account?

Explanation

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