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easyMCQCUET Accountancy 2025 22 May Shift 22026Accountancy
1 mark

Which of the following is not a part of the capital account under the Fixed Capital Method?

  1. A
    Permanent Withdrawal from capital
  2. B
    Opening Balance of Capital
  3. C
    Drawings
  4. D
    Additional Capital

Solution & Step-by-step Explanation

Under the Fixed Capital Method, the Partner's Capital Account only records items that alter the structural base capital: the opening balance, additional capital introduced, and permanent withdrawals out of capital.Regular Drawings (drawings made against expected profits) along with interest on drawings, salary, or profits are posted to the separate Partner's Current Account.

Practice this question

Try it yourself before checking the explanation above.

Which of the following is not a part of the capital account under the Fixed Capital Method?
A
Permanent Withdrawal from capital
B
Opening Balance of Capital
C
Drawings
D
Additional Capital

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