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If return of capital Rs 25000 is wrongly treated as drawings under fixed capital method which account is wrongly affected?

Answer and explanation

Correct answer: Current account will be wrongly debited

Return of capital should be debited to capital account. Treating it as drawings wrongly debits current account under fixed method.

Related tags

Return Of CapitalDrawingsErrorAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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