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Under fixed capital method A capital account is same at the beginning and end of the year. What is the most likely reason?

Answer and explanation

Correct answer: No permanent capital change occurred

Fixed capital changes only when additional capital or capital withdrawal occurs. Adjustments like profit and drawings go to current account.

Related tags

Fixed CapitalNo ChangeReasoningCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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