Question

If it is required to maintain fixed
capitals then the partners'
shares of profits must be
a. Debited to partners' current
accounts
ob. Credited to partners' current
accounts​

Answer 1

Answer:

Option A debited to partners current accounts

Answer 2

b. Credited to partners' current accounts​.

If it is required to maintain fixed capitals then the partners' shares of profits must be  Credited to partners' current accounts​.

Explanation:

• When the capitals are fixed between the partners the profit or loss earned by the company gets shared as per the capitals ratio fixed.
• If the partners earn the profit it should be credited to the partners current account not in their previous shares.
• Where as if the partners request for thr profits as shares the shares need to be transferred in their past portfolio.
• The losses in the similar manner should be owned and debited from the partners account.