- 1 Marks
FA – May 2023 – L1 – SA – Q13 – Partnership Accounts
Identifying transactions that will increase partners’ capital account balance in a fixed capital account system.
Question
In a partnership that maintains fixed capital accounts, which of the following transactions will increase partners’ capital account balance?
I. Profit on revaluation
II. Partners’ drawings
III. Partners’ share of goodwill
IV. Loan advanced to the business by a partner
A. I and II
B. I and III
C. II and IV
D. I and IV
E. I, III and IV
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