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SSC Financial and Cost Accounting P-1 QUESTION #9634
Question 1
In partnership accounts using the 'fixed capital' method, where are drawings and profit share of a partner recorded?
  • Directly in the Capital Account
  • In the Current Account only✔️
  • In the Drawings Account only
  • In a Combined Capital-and-Current Account
Correct Answer Explanation
Under the fixed capital method, the Capital Account records only actual capital contributed or withdrawn by the partner. All other movements — profit share, drawings, interest on capital, salary to partner — are recorded in a separate Current Account. Under the fluctuating capital method, all these are recorded in the Capital Account itself.