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easyMCQCUET Accountancy 2025 22 May Shift 22026Accountancy
1 mark

In the case of the fixed capital method, which two accounts are maintained for each partner?

  1. A
    Capital account and Balance sheet
  2. B
    Current account and Balance sheet
  3. C
    Capital account and Current account
  4. D
    Revaluation and Capital account

Solution & Step-by-step Explanation

Under the Fixed Capital Method, the capital balances of the partners remain unchanged unless additional capital is introduced or structural capital is permanently withdrawn. To achieve this, two separate accounts are maintained:Partner's Capital Account (records only core capital contributions and permanent withdrawals).Partner's Current Account (records day-to-day adjustments like drawings, interest on capital, salaries, and profit shares).

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In the case of the fixed capital method, which two accounts are maintained for each partner?
A
Capital account and Balance sheet
B
Current account and Balance sheet
C
Capital account and Current account
D
Revaluation and Capital account

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