Which account is credited for the interest on partners' capital by a partnership firm?
Options:
Partners' Capital account
Partner's Current account
Both
Either option 1 or 2
Correct Answer:
Either option 1 or 2
Explanation:
Option 1- Partners' Capital account Option 2- Partner's Current account Anyone account is credited depending on the method of maintaining the capital accounts of partners. If fixed capital method is being followed, then current account will be credited and if fluctuating capital method is being followed, then capital account will be credited.