Home › CBSE Class 12 (Commerce) › Accountancy › Accounting for Partnership Firms: Fundamentals › Which capital account may show a debit balance?
Which capital account may show a debit balance?
AFixed capital account
BFluctuating capital account
CNeither capital account
DBoth capital accounts
Answer & Solution
Correct answer: B. Fluctuating capital account
Under fluctuating capital, heavy drawings or losses can push the account to a debit balance, unlike fixed capital which is always credit.
Related questions
In a sole proprietorship, where does net profit go?If the deed is silent, how are losses shared?Interest on capital is allowed on capital for what period?Where do partners' capital accounts appear in the balance sheet?A partner's capital account is fixed. Where is his share of profit credited?Rs. 9,000 of omitted interest on capital is shared equally by two partners. Each is chargeInterest on capital was omitted: Rameez Rs. 3,000, Zaheer Rs. 6,000, profits equal. Net adWhat is a past adjustment in partnership accounts?