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Under fluctuating capital method A capital is one lakh rupees. He made normal drawings of eight thousand and permanent withdrawal of twelve thousand. What is closing capital if there are no other items?

Answer and explanation

Correct answer: Eighty thousand rupees

Under fluctuating method both types of withdrawal reduce capital account. One lakh minus twenty thousand equals eighty thousand.

Related tags

Fluctuating CapitalDrawingsWithdrawalCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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