Question

The current account of a partner ____________ .

• A. Will always have a credit balance
• B. Will always have a debit balance
• C. May have a debit balance or a credit balance
• D. None of these

Answer 1

Answer: (C)

May have a debit balance or a credit balance

In partnership account, partners withdraw some amount on time to time basis for their personal use. To record all such transactions a separate account is opened in the books of account. This account is called as partners current account.

When partners current account is opened, all routine transactions are recorded in partners current account. Partners capital account may have a debit or credit balance as per the transactions.