Unless otherwise agreed amongst the partners, partners' salaries, interest on capital and interest on drawings are assumed in partnership accounting to be settled by means of:

Question

Quizplus · Accepted Answer

Interest on capital, partners' salaries, and interest on drawings are typically accounted for through adjusting entries in the accounting records rather than actual cash payments. This approach simplifies the accounting process and reflects these items' impact on the distribution of profits without requiring physical cash transactions.

Unless Otherwise Agreed Amongst the Partners, Partners' Salaries, Interest on Capital