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WAEC Financial Accounting 2010 Question 30

Question 30

Partnership Accounts

Where fixed capitals are maintained, partners' drawings are transferred to the

  1. A.credit of Capital Accounts
  2. B.debit of Capital Accounts
  3. C.credit of Partners' Current Accounts
  4. D.debit of Partners' Current Accounts
Show the answer and explanation

Answer: D (debit of Partners' Current Accounts)

Explanation

With fixed capitals, drawings go to the debit of each partner's current account so the capital stays unchanged.