Where will the permanent withdrawal from capital by the partner be shown in the account of the partner when the fixed capital method is followed by the firm?

Debit side of Capital Account

The correct answer is option 3- Debit side of Capital Account.

According to the fixed capital method, the partners' capital remains unchanged unless additional capital is added or a portion of it is withdrawn, as agreed upon by the partners. Transactions such as profit or loss distribution, capital interest, drawings, and interest on drawings are recorded in a separate account known as the Partner's Current Account. The capital accounts of the partners will always maintain a consistently positive balance, which remains unchanged from year to year unless there are capital injections or withdrawals. While maintaining capital account under this method, additional capital is credited to the capital account, and the permanent withdrawal is debited to the capital account.