Question

Partners current account always shows credit balance. (State True or False)

Answer 1

Partners current account always shows credit balance. True

Answer 2

No, the given statement is false.

Partners account not only shows a credit balance but also the debit balance of the partner.

The debit balance in the partner's account depicts that the partner owes to the firm or the company whereas the credit balance in the partner's account depicts that the company has to pay to the partner or the company owes to the partner.