CUET Accountancy 2024 PYQs

(A) Salary to partner ➔ (Matched with IV - Credit side of Partner's Current Account)

Reason: ➔ Salary is the amount paid to a partner as remuneration for their services to the partnership. It is treated as an expense for the firm and a gain for the partner. Therefore, it is recorded on the credit side of the partner’s Current Account.

(B) Interest on partner's loan ➔ (Matched with III - Debit side of Profit & Loss Account)

Reason: ➔ When a partner lends money to the partnership, the firm pays interest on that loan. This interest is a charge against profit and must be paid regardless of the firm's profits. It is recorded on the debit side of the Profit and Loss Account.

(C) Interest on partner's drawings ➔ (Matched with II - Debit side of Partner's Current Account)

Reason: ➔ When a partner withdraws funds for personal use, interest may be charged (as per agreement). This is an expense for the partner and is debited to the partner’s Current Account.

(D) Additional capital introduced ➔ (Matched with I - Credit side of Partner's Capital Account)

Reason: ➔ When a partner brings additional funds into the business, it increases their capital. This is recorded on the credit side of the Partner’s Capital Account.