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Under fixed capital method B capital is fifty thousand rupees and current account has debit balance of six thousand rupees. How can the net presentation be understood?

Answer and explanation

Correct answer: Liability fifty thousand and recoverable six thousand

Capital credit is liability and debit current account is recoverable. Their meanings should be identified separately.

Related tags

Fixed CapitalDebit CurrentBalance SheetCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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