Question : The balances of partner's current account are:
Option 1: Debit
Option 2: Credit
Option 3: Always credit
Option 4: either debit or credit
Correct Answer: either debit or credit
Solution : The balance of partner's current account are either debit or credit because the capitals are fluctuating. Hence, the correct option is 4.
Question : Partner's Drawings account is closed.
Question : For the adjustment of goodwill at the time of retirement , retiring partner’s capital and current account will be ------- by his share and remaining partners ‘s capila or current account will be ------ in Gaining ratio.
Question : In the case of fixed capital, interest on capital
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