Question 29 of 43
Q.When fixed capital method is adopted by a partnership firm, which of the following items will appear in capital account ?
(a) Interest on drawings
(b) Additional capital introduced
(c) Share of profit
(d) Interest on capital
Puducherry TnboardTamil Nadu HSC (DGE) Commerce Board 2024MCQ· 1mImportance★★★★★
67% · 29/43 Questions
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Start your 14-day free trial to unlock the full solution →Under fixed capital method, only permanent items (additional capital / capital withdrawn) appear in the Capital A/c; routine items go to the Current A/c.
In the TN HSC Class-12 Accountancy syllabus (Partnership Fundamentals), partners' capital can be maintained by two methods:
- Fixed capital method — two accounts per partner: a Capital A/c that stays fixed and records only permanent changes (opening capital, additional capital introduced, and capital permanently withdrawn), and a separate Current A/c that records all routine items — interest on capital, interest on drawings, salary/commission, share of profit or loss, and drawings. …
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