Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

A partnership keeps both capital accounts and current accounts for its partners. Which accounting entry is correct for recording interest on capital for partner X?

ADebit appropriation account, credit X’s capital account
BDebit appropriation account, credit X’s current account
CDebit X’s capital account, credit appropriation account
DDebit X’s current account, credit appropriation account

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

Full mark scheme, point by point
Step-by-step worked solution
Write your answer & get it marked instantly by AI