Partners’ current accounts is a record of the transactions affecting the partner’s interest in the partnership. Which one of the following accounts are recognised in a current account of a partner, as per the partnership agreement.

Question

A)Salaries & wages of employees


B)Rent income/expenses


C)Salaries of partners


D)Interest on loans

Answer 1

C) Salaries of partners

In a partnership, the current accounts of partners are often used to record transactions that affect their interest in the partnership, including distributions, contributions, and any specific agreements regarding partner compensation, which typically includes salaries or drawings of the partners.