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?
Anurag Pathak Changed status to publish April 9, 2023
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.
Anurag Pathak Changed status to publish April 9, 2023
