Accounting 0452 · IGCSE · Partnerships

Partnerships — practice question

Frankie is one of the partners. He maintains both a capital account and a current account. Which of the statements below is correct?

  • AAny loans he makes to the partnership are added to his capital account balance.
  • BHe can have a debit balance on his current account but not on his capital account.
  • CInterest on drawings would increase a credit balance on his current account.
  • DThe balance on his capital account falls when his drawings exceed his share of profit.

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