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Give Two Circumstances Under Which the Fixed Capitals of Partners May Change. - Accountancy

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Question

Give two circumstances under which the fixed capitals of partners may change.

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Solution

The following are the two circumstances under which the fixed capitals of partner may change.
(i) If any additional capital is introduced by the partner during the year.
(ii) If any part of capital is permanently withdrawn by the partner from the firm.

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Chapter 2: Accounting for Partnership Firms-Fundamentals - Exercises [Page 97]

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TS Grewal Accountancy - Double Entry Book Keeping Volume 1 [English] Class 12
Chapter 2 Accounting for Partnership Firms-Fundamentals
Exercises | Q 5 | Page 97
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