Which of the following are shown under capital account in case capital of partner's are fixed?
(A) Fresh capital introduced
(B) Permanent capital withdrawn
(C) Interest on capital
(D) Amount of capital brought down from the previous year
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (B) and (D) only
Under the fixed capital method each partner has two accounts. The capital account records only changes in capital itself, so its balance stays the same year after year. Everything else (share of profit, interest on capital, drawings, interest on drawings, salary) goes to the current account.
(A) Fresh capital introduced Correct. Additional capital is a change in capital, so it is credited to the capital account.
(B) Permanent capital withdrawn Correct. A permanent withdrawal reduces capital, so it is debited to the capital account.
(C) Interest on capital Incorrect. Interest on capital is a periodic item like salary or share of profit, so it goes to the current account, not the capital account.
(D) Amount of capital brought down from the previous year Correct. The opening balance (Balance b/d) starts the capital account each year.
NCERT (2026-27 edition): NCERT (2026-27 edition):
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