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The deed requires fixed capital. If extra capital is brought, which account is more appropriate for recording it?

Answer and explanation

Correct answer: In capital account with agreement or current account as per deed

Under fixed capital method, capital accounts do not change without agreement. The nature of extra contribution is decided by the deed.

Related tags

Fixed CapitalExtra CapitalCurrent AccountPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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