Question

12. Partner's capital account is credited when there is Profit on revaluation b. transfer of general reserve c. Transfers of accumulated profits
D. All of above
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Answer 1

Answer:

Correct option is D.All of the above

Explanation:

partners capital accoubt is credited wjen there is profit on revaluation ,transfer of general reserve,transfers of accumulated profits

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Answer 2

Answer:

The correct option is (d) All of the above.

Explanation:

Partner's Capital Account-

A partnership capital account is a record of all financial interactions between the partners and the partnership firm, including the initial capital investment, interest on capital, withdrawals, profit-sharing, and other changes. Between the partners and the firm, sufficient responsibility and openness must be maintained.

Steps to make entries in a Partner's Capital Account-

• The capital given by partners, the profit share, the compensation of partners, the interest on capital, and any payment or asset specifically related to the partner should all be credited to the capital account.
• Debit the Account from Drawings of the Partners, paying any debt owed to the partner immediately, etc.
• Prior to determining closing capital, the profit-sharing ratio is used to divide the profit share.
• The effective capital contribution is determined by subtracting the debits from the credits to determine closing capital.
• The closing capital is included as a partner capital account on the balance sheet.

Hence, we can conclude that the partner's capital account is credited when there is Profit on revaluation , transfer of general reserve or Transfers of accumulated profits.

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