Identify the true statement in respect o

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Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Partnership

Question:

Identify the true statement in respect of the Fixed Capital Method for a Partnership Firm :-

Options:

The Balance of Partners' Capital Account will be positive/credit.

The Balance of Partners' Capital Account may be negative / Debit or may be nil/zero.

The Balance of Partners' Capital Account may be negative / Debit or may be positive/Credit.

The Balance of Partners' Capital Account will never be positive/Credit.

Correct Answer:

The Balance of Partners' Capital Account will be positive/credit.

Explanation:

The correct answer is Option (1) → The Balance of Partners' Capital Account will be positive/credit.