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______ Capital accounts always show a credit balance. - Accountancy

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प्रश्न

______ Capital accounts always show a credit balance.

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उत्तर

Fixed Capital accounts always show a credit balance.

Explanation:

Under the fixed capital system, the partner’s capital remains unchanged except for permanent changes like additional capital or withdrawal of capital. Routine transactions like interest, salary, drawings, etc. are recorded in the current account, so the capital account usually shows a credit balance.

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