Practicing Success
Practicing Success
CUET Preparation Today
| Partner's current account can have _________ |
Only credit balance Only Debit Balance Credit or Debit Balance None of the above |
| Credit or Debit Balance |
| Under the fixed capital method, the capitals of the partners shall remain fixed unless additional capital is introduced or a part of the capital is withdrawn as per the agreement among the partners. All items like share of profit or loss, interest on capital, drawings, interest on drawings, etc. are recorded in a separate accounts, called Partner’s Current Account. The partners’ capital accounts will always show a credit balance, which shall remain the same (fixed) year after year unless there is any addition or withdrawal of capital. The partners’ current account on the other hand, may show a debit or a credit balance. |
