In the Proforma of Partner's Capital Account under the Fluctuating capital Method, the Credit side includes the following items:
(A) Balance b/d (in case of credit opening balance)
(B) Salaries
(C) Interest on drawings
(D) Profit and Loss Appropriation (for share of profit)
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A), (B) and (D) only
A partner’s capital account is credited with what the firm owes or allows him and debited with what he takes or is charged.
(A) Balance b/d (in case of credit opening balance) Correct. A credit opening balance is brought down on the credit side.
(B) Salaries Correct. A salary allowed to the partner adds to his claim on the firm.
(C) Interest on drawings Incorrect. It is charged to the partner, so it is on the debit side.
(D) Profit and Loss Appropriation (for share of profit) Correct. His share of profit is credited to him.
NCERT (2026-27 edition):
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