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Under fixed capital method A capital is one lakh rupees and current account has debit balance twenty thousand rupees. If current account is adjusted against capital what will be new capital balance?

Answer and explanation

Correct answer: Credit eighty thousand rupees

Adjusting debit current account against capital reduces capital. One lakh minus twenty thousand leaves credit eighty thousand.

Related tags

Current AccountSet OffCapital ReductionCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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