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Under the Fixed Capital Method, current accounts are maintained to record
AOnly fresh capital contributions (typical) (typical)
BOnly revaluation profits (typical) (typical)
COnly goodwill adjustments (typical) (typical)
DRoutine transactions like drawings, interest and salary
Answer & Solution
Correct answer: D. Routine transactions like drawings, interest and salary
1. In the Fixed Capital Method, capital accounts show only opening capital and any permanent additions.
2. All routine items (drawings, interest on capital/drawings, salary, share of profit) flow through Current Accounts.
3. This keeps capital balances stable, useful when ratios are computed on capital.
4. Hence (B) is correct.
_Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 1 "Introduction to Partnership and Partnership Final Accounts", §1.3 ¶§1.3_