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Under fixed capital method personal expense of Rs 7000 was wrongly treated as firm expense and not recorded in partners account. What is the correct capital treatment?

Answer and explanation

Correct answer: Debit concerned current account

Personal expense is like drawings and recoverable from partner. Under fixed method debit it to current account.

Related tags

Personal ExpenseCurrent AccountError CorrectionCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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