Question

4. Under which of the following circumstances, the balance of 'Fixed
Capital Accounts' will change?
(a) Interest on capital is
provided
(b) Capital is withdrawn
(c) Salary & Commission provided
(d) Interest on drawings is charged

Answer 1

Answer:

The conditions under which the capital balances may change under the system of a fixed capital ' accounts are: (i) When additional capital is introduced. (ii) When capital is withdrawn.