Practice Activity 11.10 Posting of profits using the fixed capital accounts plus current accounts

The sharing profits or losses are very important in a partnership business. It is important for a partner to calculate his or her total income due from the partnership business.

Required: How should the profits be posted using the fixed capital accounts plus current accounts?

A suggested solution to practice activity 11.10

Using the fixed capital accounts plus current accounts, profits for each partner should be credited to the current account. This is because profits increase the income attributable to a particular partner in the business.