If salary, commission and interest on capital appear in a partner's current account, how should they be treated when calculating the closing balance?

Correct answer: All three will be credit items

Salary, commission and interest on capital are appropriations of profit payable to the partner; they increase the partner's claim and are therefore credited in the partner's current account when preparing the closing balance. Why other options are wrong: "All three debit" is incorrect because debit implies liability of the partner to the firm, which is not the case here; "Only salary debit" and "Only interest debit" are incorrect because both items are amounts payable to the partner and so are credited. Exam tip: Memorize the rule — items payable to a partner (salary, commission, interest on capital) are credited to the current account; drawings are debited.