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easyMCQCUET Accountancy 2022 30 Aug Shift 22026Accountancy
1 mark

The capital accounts of partners will always show a ____ balance under fixed capital account method

  1. A
    Debit
  2. B
    Credit
  3. C
    Zero
  4. D
    Negative

Solution & Step-by-step Explanation

Under the fixed capital account method, the capital balances remain unaltered unless additional capital is introduced or capital is withdrawn permanently. Thus, it always shows a Credit balance.

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The capital accounts of partners will always show a ____ balance under fixed capital account method
A
Debit
B
Credit
C
Zero
D
Negative

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