CUET Accountancy 2024 PYQs

(A) Salary to partner → This is an expense for the partnership and is recorded on the (I) Credit side of Partner's Capital Account. It increases the partner's capital.

(B) Interest on partner's loan → This is an expense for the partnership, recorded on the (III) Debit side of Profit and Loss Account. It reduces profit.

(C) Interest on partner's drawings → This is an income for the partnership, recorded on the (II) Debit side of Partner's Current Account. It reduces the amount the partner can withdraw.

(D) Additional capital introduced → This increases the partner's investment and is recorded on the (IV) Credit side of Partner's Current Account. It increases the partner's current balance.

(A) - (IV), (B) - (III), (C) - (II), (D) - (I).