Choose the correct statement in respect

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Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Partnership

Question:

Choose the correct statement in respect of the Fixed Capital Method for a Partnership Firm:-

Options:

Closing Balance of Partners' Current Account will never be a zero.

Closing Balance of Partners' Capital Account may be a debit or may be a credit.

Closing Balance of Partners' Capital Account will always be a credit.

Closing Balance of Partners' Current Account will never be a credit.

Correct Answer:

Closing Balance of Partners' Capital Account will always be a credit.

Explanation:

The correct answer is Option (3) → Closing Balance of Partners' Capital Account will always be a credit.