GCEFinancial AccountingPartnership Accounts2022

In a partnership, the purpose of a partners' current account is to record

Athe fixed capital contributed by each partner
Bdrawings, salaries, interest on capital, and share of profit or lossCORRECT
Cloans advanced by partners to the firm
Dgoodwill adjustments on admission of a new partner
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Why the answer is B, and why the others tempt you.
Partners' current accounts are used under the fixed capital method to record day-to-day transactions such as drawings, partners' salaries, interest on capital, and each partner's share of profit or loss. Capital accounts remain fixed unless there is a specific change in capital contribution.
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