Question

The Partner’s Capital Account is credited with:

• A. Interest on Capital
• B. Interest on Drawings
• C. Drawings
• D. Share in Loss

Hint:

Remember: Benefits → Credit side; Obligations/Losses → Debit side of Capital A/c.

Answer 1

The Correct Option is A

Step 1: Credit items in Capital A/c.
Partner’s Capital A/c is credited with all benefits given to partners: Capital introduced, Interest on Capital, Share of Profit, Goodwill, etc.
Step 2: Debit items in Capital A/c.
It is debited with amounts withdrawn by partners (Drawings), Interest on Drawings, and Share of Loss.
Step 3: Conclude.
Hence, Interest on Capital is credited to the Partner’s Capital A/c.
Final Answer: \[ \boxed{\text{Interest on Capital}} \]