Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:
Which type of balance will be shown by partners' capital account while maintaining accounts by a partnership firm under fixed capital method?
Options:
Debit balance
Credit balance
Both of these
None of these
Correct Answer:
Credit balance
Explanation:
A capital account always has a credit balance year after year unless there is an addition or withdrawal of capital.