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If under fixed capital method interest on capital is wrongly credited to capital account what is the correct correction?

Answer and explanation

Correct answer: Debit capital account and credit current account

In fixed capital method interest should go to current account. So the wrong credit is removed from capital and credited to current account.

Related tags

Error CorrectionFixed CapitalInterest On CapitalCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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