Question

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

• A. fixed capital
• B. current capital
• C. fluctuating capital
• D. floating capital

Answer 1

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.