When and why is it that the Capital Account of a partner does not show a Debit Balance in spite of regular and consistent losses year after year?
When and why is it that the Capital Account of a partner does not show a Debit Balance in spite of regular and consistent losses year after year?
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Answer:-
When the Capitals are fixed, the Capital Account of a partner will not sow debit balance since all transactions, except those of capital, between the firm and the partner are shown in the current account.
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