In a partnership, Partner A and Partner B share profits equally. There is no interest on capital, but Partner B is entitled to a monthly salary. If the business makes a profit, which statement is true?

Test yourself: pick an answer

• A)Both partners will be credited with the exact same total amount.
• B)Partner B will have a higher total amount credited to his capital/current account.
• C)Partner A will receive a higher share to compensate for Partner B's salary.
• D)Salaries are paid in cash and do not affect the capital/current accounts.