Principle of Accounts Problems MCQ. Help Please

[Steel Arm]

Got some queries concerning Accounts mcq
1.What does a credit balance on a partner’s current account represent to a business? (j04/p1/6 - num 30)
A current asset
B current liability
C long-term liability
D part of the capital

answer is d part of capital
but really don't understand why? shouldn't it be a liability to the business since it will have to pay them

2. No adjustment has been made in a club's Income and Expenditure Account for the year ended
31 December 2003 for subscriptions prepaid for 2004.What is the effect of this error? (j04/p1/7 num 32)

Surplus of income over expenditure Balance Sheet
A overstated current assets understated
B overstated current liabilities understated
C understated current assets understated
D understated current liabilities understated

answer should be B but how?

 

[Iffat]

Got some queries concerning Accounts mcq
1.What does a credit balance on a partner’s current account represent to a business? (j04/p1/6 - num 30)
A current asset
B current liability
C long-term liability
D part of the capital

answer is d part of capital
but really don't understand why? shouldn't it be a liability to the business since it will have to pay them

2. No adjustment has been made in a club's Income and Expenditure Account for the year ended
31 December 2003 for subscriptions prepaid for 2004.What is the effect of this error? (j04/p1/7 num 32)

Surplus of income over expenditure Balance Sheet
A overstated current assets understated
B overstated current liabilities understated
C understated current assets understated
D understated current liabilities understated

answer should be B but how?

not sure for the 1st question but the second 1 is b becomes subscriptions is an income hence prepaid subscriptions will be a current liability and since it hasn been accounted for the current liabilities will be understated and the income is overstated because the amount received is not for the current year.

 

[Steel Arm]

not sure for the 1st question but the second 1 is b becomes subscriptions is an income hence prepaid subscriptions will be a current liability and since it hasn been accounted for the current liabilities will be understated and the income is overstated because the amount received is not for the current year.

thx very much