Which of the following is not a part of capital account under the fixed Capital Method?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Drawings
Under the fixed capital method, a partner’s capital account changes only when capital is brought in or permanently withdrawn. All the regular items — share of profit, interest on capital, drawings and interest on drawings — go to a separate current account, so drawings are not part of the capital account.
Option (1) Permanent Withdrawal from capital — Part of the capital account. A withdrawal of capital itself reduces the fixed capital.
Option (2) Opening Balance of Capital — Part of the capital account. The fixed capital brought forward is its starting balance.
Option (4) Additional Capital — Part of the capital account. Fresh capital introduced is credited to it.
NCERT (2026-27 edition): |