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Under fixed capital method A capital is one lakh rupees. He made normal drawings of eight thousand rupees and permanent capital withdrawal of twelve thousand rupees. What will be closing capital account balance?

Answer and explanation

Correct answer: Eighty eight thousand rupees

Normal drawings go to current account and do not reduce capital account. Only capital withdrawal of twelve thousand makes closing capital eighty eight thousand.

Related tags

Fixed CapitalNormal DrawingsCapital WithdrawalCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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