whats the nature of partners capital account ? explain why salary to partners credited in capital a/c ?
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Answer:
Partners capital account is personal account of partners prepared by firm
Explanation:
It is account which record all profits and gains of partners on credit side....while all losses for partners are recorded on debited side ....
Why salary to partners credited to partners capital account....?
Salary is the profit or increment of the partners .Hence it record on credit side...But if business prepared profit and loss appropriation account then salary is debited
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