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A current account had opening debit balance five thousand rupees. During the year he received interest on capital seven thousand rupees and salary nine thousand rupees. Drawings are twenty thousand rupees. Under fixed capital method what is closing balance?

Answer and explanation

Correct answer: Debit nine thousand rupees

Credit items are sixteen thousand and debit items are twenty five thousand. Therefore closing debit balance is nine thousand rupees.

Related tags

Current AccountFixed CapitalNumericalCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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