Both partners in the business show a credit balance on their current account. What effect does including interest on drawings have on the partnership’s financial statements?
- Acurrent account balance: decreases; shares of residual profit: decreases
- Bcurrent account balance: decreases; shares of residual profit: increases
- Ccurrent account balance: increases; shares of residual profit: decreases
- Dcurrent account balance: increases; shares of residual profit: increases