Question

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Plejj help me to answer this
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Why Capital a/c of a partner will not show debit balance inspite of continuous losses.....?????
CLASS 12 (ACCOUNTANCY)​

Answer 1

I hope it's help you... Sorry for short answer..

Answer 2

Heya mate your answer is

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The capital system followed is fluctuating All the losses are debited to this account only and it is possible that this account has a debit balance. However, the accumulated profits/reserves of the firm might be huge or the losses incurred might be insignificant compared to the profit earned by the firm/ reserves kept.

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