How does a partner’s salary affect the partner’s account?

Correct answer: The partner’s account is credited

The governing concept is that a partner’s salary is an appropriation of profit payable to that partner, provided it is allowed by the partnership deed or by the applicable rules. In the partner’s capital account under the fluctuating-capital method, or in the partner’s current account under the fixed-capital method, the salary is recorded on the credit side because it increases the amount due to the partner. Thus, option A is correct. A debit would reduce the partner’s claim, so option B is unsuitable. Bank and goodwill accounts are not automatically affected merely because salary is allowed; therefore options C and D do not represent the normal entry.