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Under fixed capital method where will the second effect of interest on capital be recorded?

Answer and explanation

Correct answer: Credit in partners current account

Under fixed capital method normal adjustments go to current account. Interest on capital is payable to partner so current account is credited.

Related tags

Fixed CapitalCurrent AccountInterest On CapitalAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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