Concept:Capital contributions of partners are recorded in a separate ledger account prepared for each partner.
Explanation:The partnership capital account is used to record each partner's initial and additional capital contributions.
This account also shows drawings, share of profits or losses, and other long-term transactions between the firm and the partner.
Current accounts, on the other hand, handle short-term items such as salaries, interest on capital, and periodic profit shares.
Therefore, the capital contribution itself belongs in the partner's capital account, not the current account, trading account, or balance sheet as a separate account.
Answer:B. capital account.