Additional capital brought by a partner is recorded on which side?

Correct answer: Credit side

Direct answer: Option A, credit side. A partner’s additional capital is money or an asset brought into the firm, so the firm’s obligation or claim of that partner increases. Under double-entry logic, the partner’s Capital Account is credited for the amount introduced. Step by step: the partner brings cash or another accepted asset; the firm receives an asset, so the relevant asset or cash account is debited; the partner’s capital claim increases, so the Capital Account is credited. Option A is correct because capital introduced is recorded on the credit side of the partner’s capital account. Option B, debit side, is used for reductions such as drawings or losses under the relevant method, not for capital brought in. Option C, both sides, is not the normal recording rule for one additional capital contribution; the corresponding debit is made in the cash or asset account, not also in the same capital account. Option D, no side, is wrong because every properly recorded contribution must enter the books. Under the fixed-capital method, the capital account still receives the additional capital credit, although routine items such as drawings, interest and salary usually go through the current account. Memory cue: money brought in increases the partner’s claim, so credit capital.