WAEC Accounting 2016 Objective — Question 30
Question 30 of 50 from the West African Examinations Council (WAEC) Accounting 2016 Objective paper, with the correct answer and a full explanation.
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30. Where fixed capitals are maintained in a partnership, share of 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
- A. credited to partners capital accounts
- B. credited to partners current accountsCorrect
- C. debited to partners capital accounts
- D. debited to partners current accounts
Explanation
When fixed capital is maintained in a partnership, the individual monetary relation of the partners with the partnership business is treated in the current account. Thus, share of profit is credited to Partners Current Account.
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