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WAEC Accounting 2021 Objective — Question 4

Question 4 of 50 from the West African Examinations Council (WAEC) Accounting 2021 Objective paper, with the correct answer and a full explanation.

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Where partners maintain a fluctuating capital account, partners' share of profit is credited to

  • A. capital accountCorrect
  • B. profit and loss appropriation account
  • C. current account
  • D. profit and loss account

Explanation

A fluctuating capital account means partners do not keep a separate current account; all events relating partners to the business are recorded directly in the capital account.

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