7 Views

Question : Which accounts are opened when the capital are fixed?

Option 1: Only capital account 

Option 2: Only current account 

Option 3: Capital account as well as current account

Option 4: Either capital account or current accounts


Team Careers360 2nd Jan, 2024
Answer (1)
Team Careers360 14th Jan, 2024

Correct Answer: Capital account as well as current account


Solution : Under fixed capital method the original capital invested by the partners remain constant, unless additional capital is introduced or drawing are made against capital by an agreement. When fixed capital method is adopted, all entries related to drawing, ioc, profit etc. are passed through current account. Capital and current both account are opened when the capital are fixed.
Hence, option 3 is the correct answer.

Related Questions

East Point College | BBA Admi...
Apply
NBA Accredited | AICTE Approved
TAPMI MBA 2025 | Technology M...
Apply
MBA Admission Open in Technology Management and AI & Data Science | NAAC A++ | Institution of Eminence | Assured Scholarships
Amity University, Noida Law A...
Apply
700+ Campus placements at top national and global law firms, corporates, and judiciaries
East Point College | MBA Admi...
Apply
NBA Accredited | AICTE Approved
Chitkara University MBA Admis...
Apply
NAAC A+ Accredited | 100% CAMPUS RECRUITMENT
Amrita Vishwa Vidyapeetham | ...
Apply
Recognized as Institute of Eminence by Govt. of India | NAAC ‘A++’ Grade | Upto 75% Scholarships | Extended Application Deadline: 30th Jan
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books