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easyMCQCUET Accountancy 2025 13 May Shift 22026Accountancy
1 mark

Under the fixed capital method of a partnership concern, 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

When capitals are fixed, the capital account balance remains unchanged unless additional capital is introduced or a permanent withdrawal of capital is made. All regular transactions such as interest on capital, drawings, salary, and share of profit/losses are recorded in a separate account called the Current Account.Thus, a Capital Account and a Current Account are maintained for each partner.

Practice this question

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Under the fixed capital method of a partnership concern, 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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