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Question
Partner's Current Accounts are opened when their Capital Accounts are:
Options
Fixed
Fixed and Fluctuating
Fluctuating
None of these
MCQ
Solution
Fixed
Explanation:
When a partner's capital accounts are fixed, the current account is formed, and all items and transactions, such as interest on capital, drawings, and so on, are adjusted through the current account, while the capital remains fixed.
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Maintenance of Capital Accounts of Partners
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