How to find the current account of a partners

Dear Student
Partner's Current Account is open when the capitals of partner's are fixed.
This account is debited with

• drawings,
• interest on drawings and
• share of loss sustained during the period

and is credited for

• partner's salary,
• commission,
• interest on capitals and
• share of profits earned.

After making all adjustments
if it have debit balance it will be shown in the asset side of balance sheet and if it will have credit balance it will be shown on the liabilities side.
Calculation of Current Account's Balance -

	Opening balance of Current Account	XXX
Add:	Interest on Capital	XXX
	Salary to Partners	XXX
	Commission to partners	XXX
	Distributable Profits	XXX
Less:	Drawings	(XXX)
	Interest on Drawings	(XXX)
	Distributable Loss	(XXX)
		XXX / (XXX)

Current account of the partners occur in the financial statements only when the capital of partners is fixed.

Regards