Give two circumstances under which the fixed capitals of partners may change.

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Solution

Under the fixed capital method, the capital of partners may change in the following two circumstances

(i) First, when fresh capital is introduced by the partner with the consent of other partners.

(ii) Second, when a part of the capital is withdrawn by the partner with the consent of other partners.

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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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