If a firm is maintaining bothcapital accounts and currentaccounts of the partners Aand B. Additional capitalintroduced by B will berecorded in:O a. Partner B's currentaccountO b. Either in currentaccount or capitalaccountO c. Partner B's capitalaccounto d. All options are correct

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Description: If a firm is maintaining bothcapital accounts and currentaccounts of the partners Aand B. Additional capitalintroduced by B will berecorded in:O a. Partner B's currentaccountO b. Either in currentaccount or capitalaccountO c. Partner B's capitalacco

Partners capital account is the account were partners capital contribution are recorded. Partners…

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Accounting

If a firm is maintaining both capital accounts and current accounts of the partners A and B. Additional capital introduced by B will be recorded in:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

If a firm is maintaining both
capital accounts and current
accounts of the partners A
and B. Additional capital
introduced by B will be
recorded in:
O a. Partner B's current
account
O b. Either in current
account or capital
account
O c. Partner B's capital
account
o d. All options are correct

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