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In a difficult capital account question what should be identified first so that items go to the correct place?

Answer and explanation

Correct answer: Whether capital method is fixed or fluctuating

In fixed method regular items go to current account and in fluctuating method they go to capital account. Identifying method first prevents wrong posting.

Related tags

Capital AccountsExam StrategyFixed FluctuatingPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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