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Under fixed capital method As current account shows Rs 2000 debit balance. What is its correct meaning?

Answer and explanation

Correct answer: A owes amount to the firm

Debit balance of current account shows amount against the partner. It may arise due to excess drawings or charges.

Related tags

Current AccountDebit BalanceMeaningCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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