Question

When partners' capital accounts are floating, which one of the following items will be written on the credit side of the partners' capital accounts? *

1 point

(a) Interest on drawings

(b) Loan advanced by partner to the firm

(c) Partner's share in the firm's loss

(d) Salary to the active partners​

Answer 1

Answer:

Hey buddy !

Btw, I am not confirmed but I think option c is the correct

Answer 2

ANSWER :

★ (d) Salary to the active partners

• ➺ When partners' capital accounts are floating, the item that will be written on the credit side of the partners' capital accounts is Salary to the active partners.

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KNOW MORE :

❒ Floating Capital Account :-

• ✎ Where of the partners of a partnership business are fluctuating or floating, all entries relating to increase or decrease in the capital of partners is done through the Capital Accounts opened in the name of each partner. It is known as Floating Capital Account.

• ✎ Floating Capital Account is also known as Fluctuating Capital Account.

• ✎ When the capital accounts of the partners of a partnership business is floating, then for each partner only one account, i.e., capital account is kept.
• ✎ The balance of capital accounts keep on changing from time to time in case of Floating Capital Account.

• ✎ Floating Capital Account may show negative balance.