CUET Accountancy - Under the fixed capital method, the capital of the partners shall remain fixed unless additional capital is introduced or a part of the capital is withdrawn as per the agreement between the partners. Which among the following is NOT the feature of the fixed capital method? | PYQs + Solutions

CUET Accountancy 2025 27 May Shift 2

Partnership

Easy

common

The partners' capital accounts will always show a credit balance.

All adjustments for drawings, salary, interest on capital, etc., are posted (transferred) in the capital accounts.

Under this method, two accounts are maintained for each partner.

The partners' current account, on the other hand, may show a debit or a credit balance.

✅ Correct Option: 2

CUET Accountancy 2025 27 May Shift 2 PYQs