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Under fixed capital method revaluation profit is distributed among partners. If capital accounts are to remain fixed where will this profit be credited?

Answer and explanation

Correct answer: Partners Current Accounts

Under fixed capital profit adjustments go to current accounts. Changing capital accounts would break the fixed method.

Related tags

Revaluation ProfitFixed CapitalCurrent AccountCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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