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Under fixed capital method A capital account is one lakh rupees and no permanent capital change occurred. Yet current account has a large credit balance. What will be closing capital account balance?

Answer and explanation

Correct answer: One lakh rupees

In fixed capital method current account does not change capital account. If no permanent change occurs capital remains one lakh.

Related tags

Fixed CapitalNo Permanent ChangeCurrent AccountCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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