What balance does a Partner's Current Account has?

Debit balance

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Credit balance

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Either (A) or (B)

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

None of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Either (A) or (B)
A debit balance in a partner's current account appears as a current asset on the balance sheet.
A credit balance indicates that the business owes the partner this amount and hence the current account appears as a liability on the balance sheet.
"

Suggest Corrections

Similar questions

After the death of a partner, the balance in his capital account is transferred to executor's account. True or False.

Join BYJU'S Learning Program