Page 48 - MAZOO EBOOK 1_Neat

Distinction between current and fixed capital

Fixed Capital Account - In case of fixed capital account, balance of capital in the beginning of the

year, fresh capital introduced during the current year is recorded credit site and permanent

withdrawal of excess capital and closing balance of capital are recorded on debit site of the

capital account. There is always a credit balance in the capital account of a partner, which is

shown on equities site of balance sheet. Following is format of fixed capital account.

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