A-LevelAccountingPreparation of financial statements9706/12 · May/June 2017 · Q141 Mark
A partnership maintains both capital and current accounts for its partners. What is the correct accounting entry for recording interest on capital for partner X?
Aaccount to be debited appropriation account to be credited X's capital
Baccount to be debited appropriation account to be credited X's current
Caccount to be debited X's capital account to be credited appropriation
Daccount to be debited X's current account to be credited appropriation
✓ Correct answer
B: account to be debited appropriation account to be credited X's current
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