GK
ACCOUNTING
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Question
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In case of fixed capital accounts, following are recorded in the capital accounts of partners
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Balance of capital in the beginning of the year
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Fresh capital introduced during the current year
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Permanent withdrawal of excess capital and closing balance of capital
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All of the above
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Explanation:
Detailed explanation-1: -So, when the partner’s capital are fixed, drawings made by a partner will be recorded in the current account debit side. Was this answer helpful?
Detailed explanation-2: -A partnership capital account is an account that contains all the transactions occurring between the partners and the partnership firm, such as the initial contribution of capital in partnership, the interest of capital paid, drawings, the share of profit, and other adjustments.
Detailed explanation-3: -When capitals of the partners are fixed, following accounts are required to be maintained: (i) Partner’s fixed capital accounts (ii) Partner’s current capital accounts.
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