Partners’ current accounts records amounts payable to the partners/claimable by the partners during or at the end of the financial year. Which one of the following are not recorded in a partner’s current account.

Question

A)Interest on Capital accounts, current accounts and drawings account


B)Salaries to partners


C)Bonusses/management allowances and partner’s share in final profits/losses


D)Drawings from capital accounts

Answer 1

In a partner's current account, the following are typically recorded:

• Interest on capital accounts
• Salaries to partners
• Bonuses/management allowances and partner’s share in final profits/losses
• Drawings from capital accounts

However, the option that is typically not recorded in the partner's current account is:

D) Drawings from capital accounts.

Drawings usually affect the current account but are more commonly tracked in a separate account designated for drawings, as they represent distributions to partners and affect the equity of the partners but do not directly pertain to the calculations of interest or salary.

So the correct answer is D).