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The deed follows fixed capital method and B paid a personal expense through the firm. In which account will this amount usually be recorded?

Answer and explanation

Correct answer: Bs current or drawings account

Under fixed capital method, personal withdrawals are not directly recorded in capital account. They are shown in current or drawings account.

Related tags

Fixed CapitalPersonal ExpenseDrawingsPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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