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Under fluctuating capital method As capital account has opening credit balance Rs 50000 and closing debit balance Rs 10000. What is the net change?

Answer and explanation

Correct answer: Decrease of Rs 60000

Moving from Rs 50000 credit to Rs 10000 debit shows total decrease of Rs 60000. It may indicate a serious overdrawn position.

Related tags

Debit CapitalCapital ChangeFluctuating CapitalCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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