The following items are recorded on the Credit side of partner's capital A/c.
A. Interest on Capital
B. Interest on Partner's loan
C. Partner's Salary
D. Interest on Drawings
E. Capital Introduced
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → A, C and E only
A. Interest on Capital — True. It is an amount due to the partner, so it is credited.
B. Interest on Partner's loan — False. It is a charge against profit debited to the Profit and Loss Account and credited to the partner’s loan account, not the capital account.
C. Partner's Salary — True. Salary earned by the partner is credited to his capital account.
D. Interest on Drawings — False. It is charged to the partner, so it goes on the debit side.
E. Capital Introduced — True. Fresh capital brought in increases the capital, so it is credited.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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