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Under fixed capital method As opening capital is Rs 80000 and he introduced additional capital of Rs 20000. If there is no withdrawal of capital what will be closing capital balance?

Answer and explanation

Correct answer: Rs 100000

Additional capital is added to the capital account. In fixed capital method normal profit or drawings do not change capital.

Related tags

Fixed CapitalAdditional CapitalCapital AccountCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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