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The deed follows fixed capital method but the accountant debited drawings to capital account. Why is this an error?

Answer and explanation

Correct answer: Because drawings should go to current account

Under fixed capital regular adjustments go to current account. Posting drawings to capital account will disturb fixed capital.

Related tags

Fixed CapitalDrawingsCurrent AccountPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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