State whether the following statement are True or False.The balance of

1.	State whether the following statement are True or False.The balance of capital account remains constant under fixed capital method.OptionsTrueFalse
Answer» True. Explanation: Under fixed capital method, all transactions other than introduction of fresh capital or withdrawal of capital are recorded in Partners’ Current Accounts. This is done so that the balance of Partners’ Capital Accounts remains intact. Hence, the given statement is correct.

State whether the following statement are True or False.The balance of capital account remains constant under fixed capital method.OptionsTrueFalse

Answer»

True.

Explanation: Under fixed capital method, all transactions other than introduction of fresh capital or withdrawal of capital are recorded in Partners’ Current Accounts. This is done so that the balance of Partners’ Capital Accounts remains intact. Hence, the given statement is correct.

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State whether the following statement are True or False.The balance of capital account remains constant under fixed capital method.OptionsTrueFalse

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