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SSC Financial and Cost Accounting P-1 QUESTION #6113
Question 1

Which list shows entries that should be credited to a partner's current account?

  • Interest on partner's loan, partner's salary, share of profits✔️
  • Interest on drawings, negative opening balance, share of loss
  • Interest on drawings, positive opening balance, share of loss
  • Interest on partner's capital, interest on drawings, share of profits
Correct Answer Explanation

Option A is correct.

Credits to current account increase the partner's entitlement:

  • Interest on partner's loan — reward for lending to the firm
  • Partner's salary — appropriation in favour of the partner
  • Share of profits — partner's portion of residual profit

Interest on drawings is debited (charged to) the partner.