Multiple choice

In which of the following ways the interest on a partner's capital will be shown, if the capital of the partner isfixed?

  1. Partners Capital Account

  2. Partners Current Account

  3. Profit and Loss Account

  4. Profit and Loss Adjustment Account

  5. In Interest on Capital A/c only
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Except capital (including additional capital or capital withdrawn permanently), everything will take place in the partner's current account.

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