Give two circumstances in which the Fixed Capitals of partners may change.

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Solution

Two circumstances in which the Fixed Capitals of the partners may change are:
1. If the partners bring in some additional capital during the course of the business of the firm.
2. If the partners withdraw some amount of their capitals through an agreement among themselves.

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List the items which may be debited or credited in capital accounts of the partners when

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Which of the following shall have effect on the capital account of partners under fixed capital method?

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