Which accounts are opened when the capital of partners are fixed in the partnership firm?

Both Capital and Current Account

The correct answer is option 3- Both Capital and Current Accounts.

Both Capital and Current Accounts are opened when the capitals of partners are fixed in the partnership firm.

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the capitals of the partners shall remain fixed unless additional capital is introduced or a part of the capital is withdrawn as per the agreement among the partners.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 account, 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.