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  • If capital accounts are fixed, which of the following ent...
Multiple choice

If capital accounts are fixed, which of the following entries can be recorded in these accounts?

  1. Interest on capital

  2. Interest on drawings

  3. Drawings on permanent basis

  4. All of these

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Drawings are entered in capital accounts. All other entries are recorded in current accounts.

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