Question

in case the partners capitals are fixed in which account will withdrawal of capital be recorded

Answer 1

The withdrawal of capital will be recorded in the current account.

• In case of Fixed Capital method, generally two accounts are opened for recording the transactions, the capital and current account.
• Capital Account that documents capital introduction. If there is an influx of new capital and a reduction of capital, it remains set year after year.
• Current account, documents other changes like wage, commission, capital interest, drawings etc. So on the current account debit side, drawings made by a partner would be reported when the partner's capital is set.

Answer 2

Answer:

The withdrawal of capital will be recorded in the current account. In case of Fixed Capital method, generally two accounts are opened for recording the transactions, the capital and current account.