Which document records all credits and charges against each partner's financial interest in a firm?

The partners' accounting records serve as the official documentation for tracking all credits and charges against each partner's financial interest in a partnership. These records provide a detailed account of each partner’s contributions, distributions, liabilities, and gains or losses within the partnership.

In a partnership, it is crucial for each partner to be aware of their financial standing and how their investments and distributions impact their overall interest in the firm. The accounting records compile this information in an organized manner, allowing for transparency and clarity among partners. They are often based on entries that reflect transactions made by the partnership and allocate appropriate amounts to each partner accordingly.

The other options do not encapsulate this requirement effectively. The liquidation report is primarily used during the dissolution of a partnership and details how assets and liabilities will be divided rather than maintaining ongoing financial interests. The partnership agreement outlines the terms and conditions of the partnership, including profit-sharing ratios, but does not serve as a direct record of financial activities. The account settlement sheet, while it may summarize some financial positions, does not typically maintain the detailed and ongoing records required for tracking each partner’s credits and charges effectively throughout the life of the partnership.