Under Fixed Capital Method:
Under Fixed Capital Method:
a) Only the partner’s capital account is maintained
b) only the partner’s current account is maintained
c) both capital and current accounts of a partner are maintained
d) Neither capital nor current accounts of a partner are maintained
Anurag Pathak Changed status to publish April 9, 2023
Ans – c)
Explanation:-
Under Fixed Capital Method.
The Capital accounts are divided into two accounts.
1. Partner’s Current Account
2. Partner’s Capital Account
As the name suggests, Fixed Capital Method. All recurring nature transactions of partners are recorded in a separate account called the current account.
The Purpose of recording is to show the fixed capital account year to year until any additional capital and permanent withdrawal of capital occurred.
Anurag Pathak Changed status to publish April 5, 2023
