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Under fixed capital method current account has debit balance twenty thousand rupees and capital account has credit balance fifty thousand rupees. If both are presented net what will be net liability?

Answer and explanation

Correct answer: Thirty thousand rupees

Credit capital is liability and debit current account is recoverable. Net liability is fifty thousand minus twenty thousand which is thirty thousand.

Related tags

Net PresentationCurrent AccountCapital AccountCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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