Concept:Partners' current earnings are recorded in a separate account distinct from fixed capital contributions.
Explanation:In partnership accounts, the capital account shows only the permanent amount invested by each partner.
Ongoing transactions such as salaries, interest on capital, drawings, and shares of profit are treated as current earnings.
These current earnings are recorded in the partners' current account, not in the capital account.
A fixed capital system therefore uses the current account to track yearly changes in each partner's entitlement.
Savings accounts and share capital accounts are not relevant to partnership profit sharing.
Answer:B. Current account