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Question

In case of fixed capital accounts, transactions such as drawings, commission are recorded in a separate account called account.

A
fixed capital
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B
current capital
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C
fluctuating capital
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D
floating capital
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Solution

The correct option is B current capital
In case of partnership type of ownership in a business, the partner's current account is prepared when capital is fixed. In case of fixed capital accounts, transactions such as drawings, commission are recorded in a separate account called current account.

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