Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 12 - No. 5)
What type of account is a partner's current account used for?
To record the initial capital contribution.
To track the partner's share of profits and losses.
To record all transactions between a partner and the business during the year.
To record the partner's permanent capital.
Explanation
The current account reflects the ongoing transactions between a partner and the partnership beyond their initial capital contribution.
Comments (0)
