The partners' salary and interest allowances are recorded in
A) expense accounts.
B) drawing accounts.
C) capital accounts.
D) liability accounts.

Name: The partners' salary and interest allowances are recorded in A) expense accounts. B) drawing accounts. C) capital accounts. D) liability accounts.
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Question

Quizplus · Accepted Answer

The partners' salary and interest allowances are not expenses or liabilities, nor are they withdrawals from the business, so they must be recorded in the capital accounts of the partners.

The Partners' Salary and Interest Allowances Are Recorded in